Glad to see that you guys are finding that video useful! I wa | Coin Bureau Insider

Glad to see that you guys are finding that video useful!

I wanted to quickly share a few thoughts about some altcoins - especially given that we are in a crypto bear market.

Earlier today, I retweeted this:

https://twitter.com/AlgodTrading/status/1528082340412641281

It's a very good point that I don't think too many people take into account when they are doing their analysis.

The FDV or Fully Diluted Value (Fully Diluted Market Cap on CMC) is the market cap that accounts for all tokens including those that have not been released yet. Those that could be part of mining rewards or in a vesting schedule.

While you may think that a project has a "low" market cap compared to its peers, it's the FDV that you also need to consider. This is especially the case for those projects that still have a lot of the supply locked up in private / seed sale vesting contracts.

Not only that, but you also need to appreciate the fact that if this is a long and drawn-out bear market, those tokens are likely to unlock within that period. People who had invested in these projects prior to the bear market are likely to be extra keen to liquidate their holdings.

This is another reason why you should be extra careful when picking up alts that you think are really "cheap". Supply unlocks of any type are going to impact on price especially if they lead to selling.

Of course, some of these vesting schedules could be well structured so to avoid large unlock cliffs. That's why you may also want to look at the vesting schedule for any of these projects. These will most likely be in their docs, whitepaper or on third party research portals like Messari and Binance research.

So, it's worth keeping that in mind