The Curious Case of Fully Diluted Valuations

DEC 30, 2020 • 8 Min Read

Alex Gedevani

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It’s a rite of passage for everybody in crypto to have an existential crisis when pondering over the importance of fully diluted valuations. There’s been cases where investors have psyched themselves out of investing into a project because the FDV was “too high” or vice versa, investing at a seemingly attractive FDV but underperforming. What gives? There seems to be confusion in how to properly analyze FDV. 

Before jumping in let’s look from the context of a bull market, a rising tide typically lifts all boats. Bullish views and statements drown out more cautious sentiment and risks presented. If you’re trying to outperform crypto market beta (i.e BTC or ETH), making mistakes like misjudging ramifications of a project’s FDV in the early stages of a bull run cycle can be costly. Also, you’re dealing with more

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