The Dark Side of Tokenomics: Exposing Low Float, High Valuation Token Launches | $TIA $DYM $SAGA $ARCH

BY Cosmos JoeJune 5 · video

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:

  1. Market Manipulation: Easier for large holders to manipulate prices.
  2. Illusion of Value: Creates a misleading appearance of high value.
  3. Inflation Risk: New token releases dilute value, leading to losses.
  4. Investor Exploitation: Developers may pump prices and sell at a profit, harming smaller investors.
  5. Lack of Transparency: Often unclear token release schedules increase risk.

Overall, this structure can exploit investors and distort market dynamics.