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    Token Dilution: The Silent Portfolio Killer

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    Token Dilution: The Silent Portfolio Killer

    You buy a token at $1. The market cap is $10M. Looks cheap? Wait. What is the Fully Diluted Valuation (FDV)?

    The Unlock Cliff

    Many projects lock tokens for early investors and the team. When these tokens unlock (vest), supply increases.

    • If demand stays the same, Price Drops.

    FDV vs. Market Cap

    • Market Cap: Value of tokens currently trading.
    • FDV: Value if ALL tokens were unlocked.

    If Market Cap is $10M but FDV is $1B, you are at risk of massive dilution.

    Check the impact of future unlocks with the Token Dilution Calculator.

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