In cryptocurrencies, low float high FDV tokenomics involves a small number of tokens in circulation (low float) but a high total valuation including all potential tokens (high FDV). This can be problematic because:
- Market Manipulation: Easier for large holders to manipulate prices.
- Illusion of Value: Creates a misleading appearance of high value.
- Inflation Risk: New token releases dilute value, leading to losses.
- Investor Exploitation: Developers may pump prices and sell at a profit, harming smaller investors.
- Lack of Transparency: Often unclear token release schedules increase risk.
Overall, this structure can exploit investors and distort market dynamics.
