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Crypto market participants’ growing preference for character or celebrity meme tokens signals a growing disdain for projects with a high fully diluted value, the latest Kucoin report has said. Tap-to-earn projects have “remarkably higher overall participation data” due to their lower barriers to understanding and participation.
Tokens with High FDV Face Limited Price Discovery Opportunities
According to Kucoin’s June research report, crypto market participants are increasingly turning their attention to character or celebrity meme tokens with “relatively obscure low-market-cap assets.” The report suggests the shift stems from investors’ frustration with projects that have a high fully diluted value (FDV) and low initial circulating market capitalizations.
As a Bitcoin.com News educational post recently explained, FDV represents the total value of a cryptocurrency project if all its tokens, including locked ones, were in circulation. A high FDV potentially points to a dilution of the token’s value if and when the locked tokens or coins enter circulation.
The Kucoin report indicates some investors are avoiding tokens with high FDV because they offer limited price discovery opportunities for retail investors, making wealth creation challenging. To illustrate changing investor behavior, the report highlights how Notcoin, launched with 100% of its tokens in circulation, has trended.
“Notcoin was launched with 100% of its tokens in circulation right from the start. After some time on the market, by the end of May, both the price and trading volume of NOT saw significant growth. This also boosted the overall market attention towards its Tap To Earn and Minigame products,” the report noted.
The report also claimed that tap-to-earn projects have “remarkably higher overall participation data” due to their lower barriers to understanding and participation compared with other gamefi or move-to-earn projects.
Furthermore, TON technology’s reported high-performance and scalable architecture is believed to provide robust support for Notcoin, ensuring smooth gameplay. The integration of Notcoin with Telegram is also said to help significantly reduce the former’s customer acquisition costs while rapidly expanding its user community.
What are your thoughts on the findings of the Kucoin research study? Share your opinions in the comments section below.