What is the significance of fully diluted shares in the context of cryptocurrency investments?

1 answers

• hanph7Dec 16, 2024 · 9 months ago
  Fully diluted shares are an important factor to consider when investing in cryptocurrencies. They represent the maximum number of shares that could be in circulation if all possible shares were issued. This includes not only the currently circulating supply but also any additional shares that could be created in the future. By considering fully diluted shares, investors can assess the potential dilution that could occur and how it might affect the value of their investment. It's like looking at the worst-case scenario and evaluating the risk involved. Fully diluted shares provide a more comprehensive understanding of the cryptocurrency's market capitalization and the potential impact of future share issuances.
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