Understanding Low FDV Projects on DegenPad
Last updated
Last updated
ChainGPT.org
Web3 investors and traders are constantly looking for projects that offer significant upside potential while minimizing risk. One critical metric that helps gauge a project’s long-term value is Fully Diluted Valuation or FDV. Recently, even major platforms like Binance have taken steps to address the challenges posed by high FDV tokens with low circulating supply, underscoring the importance of this metric in creating sustainable market environments.
At DegenPad, we’ve recognized the significance of FDV and have made it a cornerstone of our launchpad’s project selection process. This blog will explore what FDV is, why low FDV projects can be highly attractive, and how DegenPad leverages this metric to bring you the most promising opportunities in the Web3 space.
Fully Diluted Valuation (FDV) is a metric used to estimate a cryptocurrency project’s potential market capitalization. It considers the tokens currently in circulation and the total number of tokens that could be in circulation if all potential tokens were issued.
This includes tokens reserved for future use, such as those allocated for team members, advisors, or future development activities, and those to be released through staking rewards, airdrops, or other mechanisms.
FDV is calculated by multiplying the total possible supply of a token by its current price. For example, if a project has a maximum supply of 1 million tokens and the current price per token is $10, the FDV would be $10 million. This metric provides a broader view of the project’s potential value, accounting for all tokens that could eventually enter the market.
Low FDV projects are those where the fully diluted valuation is relatively modest compared to the current market capitalization. This can be indicative of several things, including:
Room for Growth: A low FDV suggests significant room for price appreciation as the project progresses. Investors can benefit from early entry before the broader market fully recognizes the project’s value.
Lower Initial Capitalization: Projects with low FDV often have a smaller initial market cap, which can attract investors looking for undervalued opportunities. This can mean the project is still in its early stages, with plenty of growth potential.
Risk Management: While all investments carry risk, low FDV projects might present a lower downside risk relative to their potential upside. This is because the market has not yet fully priced in all future tokens, and the project’s valuation remains relatively conservative.
Incentive for Stakeholders: For projects with a lower FDV, the founding team and early investors are often more motivated to grow the project, as they hold a significant portion of the total supply that will only be released over time. This alignment of incentives can lead to stronger commitment and better outcomes for all participants.
At DegenPad, we’ve made it our mission to identify and launch the most promising low FDV projects in the Web3 space. Our selection process is meticulous and designed to ensure that the projects we support are innovative and offer real value to investors.
Rigorous Screening Process: We start by evaluating each project’s fundamentals. This includes the team’s experience, the project’s technology, market potential, and overall vision. Only projects with strong foundations make it to the next stage.
Focus on Potential and Innovation: We look for projects that bring something new — whether it’s a novel use case, a unique technological solution, or a fresh approach to an existing problem. Innovation is key to standing out in the crowded crypto market.
Strategic Partnerships: We collaborate with projects that have the backing of reputable partners or investors. This provides additional validation and ensures that the project has the resources and support needed to succeed.
Balancing Risk and Reward: By focusing on low FDV projects, we aim to offer our community opportunities with high upside potential while managing downside risk. Our goal is to empower investors to make informed decisions and participate in the growth of the next big thing in Web3.
As we launch DegenPad, we’re excited to introduce six exceptional projects that embody the spirit of low FDV opportunities:
Porta Wallet: Porta Wallet is your comprehensive solution for digital asset management. With features like social trading, thorough wallet management, and high-speed sniping tools, Porta Wallet makes trading effortless and efficient.
Fanton: The next evolution in Fantasy Sports and Gaming on Telegram. Leveraging the power of TON & Telegram’s rapidly expanding user base, Fanton provides an accessible and engaging fantasy sports experience.
PolarFighter: PolarFighter, the first-ever collection of ERC-1000 tokens from Polarise Protocol, is supported by major institutional investors. Polarise Protocol seeks to transform multi-form digital asset finance with its multi-chain platform and innovative financial tools, offering secure services such as realizing an asset’s rarity value with immediate floor price liquidity and nearly 100% LTV loans without mid-term risk.
Stage: Stage aims to transform the music industry by combining Idol-style captivating music competitions with SocialFi, empowering fans to influence artists’ success while earning Real World Assets (RWAs) as tangible stakes in their careers.
Shieldeum: Shieldeum operates as an AI-powered Decentralized Physical Infrastructure Network (DePIN), specifically designed to enhance internet security for Web3 projects and cryptocurrency holders. It offers advanced security features, safeguarding digital assets and ensuring robust protection for users in the decentralized space.
NOTAI: NOTAI simplifies the onboarding process through the Telegram mini-app, offering automated wallet creation, account abstraction, and an intuitive user interface. This makes web3 accessible even to users without a technical background.
At DegenPad, we understand that the crypto market is as much about managing risks as it is about seizing opportunities. By focusing on low FDV projects, we provide our community with access to early-stage projects that offer significant upside potential while maintaining a conservative valuation. This approach not only aligns with the needs of savvy investors but also ensures that we’re supporting projects with a real shot at long-term success.
As we gear up for our official launch, we invite you to join the DegenPad community and explore the promising low FDV projects that we’re bringing to the table.
Whether you’re an experienced trader or a newcomer to the world of DeFi, DegenPad is your gateway to high-value opportunities in the decentralized future. Stay tuned for more updates and get ready to dive into the next wave of innovation with us.
