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ᴛ ◒ ꜱ ʏ ɴ Profile picture
@0xTosyn
Jan 12, 2023 • 11 tweets • 2 min read • Read on X
Day 11 of 31 days crypto/defi terminologies challenge

FDV- Fully Diluted Valuation

During research or going through some Defi analysis tools, the word ''Fully Diluted Valuation/ Marketcap'' is usually attached to the details of a token or coin.
You might wonder what this means and how it helps my research course.

A thread 🧵
FDV — is a simple concept. It builds on the idea of market capitalization; for short, "Marketcap."

Market Capitalization- is the total value of all the coins that have been mined or is in circulation
It's calculated by multiplying the number of coins in circulation by the current market price of a single coin/token.

-Circulating supply: This is the number of coins or tokens that are publicly available to buy or sell.
If you can trade them, they are considered to be circulating.

Total supply: This is the total amount of coins or tokens of a specific cryptocurrency that have been created or mined in circulation, including those that are locked or reserved.
Take note:This doesn't include the burnt or destroyed.

Maximum supply- It is the maximum number of coins or tokens that will be created.

This means that once the maximum supply is reached, there won't be any new coins mined, minted, or produced in any other way.
-How do you calculate FDV  and market cap if it wasn't given in a project or, instead, you want to do a confirmation test

Calculating FDV and marketcap is primary

It is done just  by collecting two pieces of data:
FDV=Maximum supply × current market value of the token

Market cap=Circulating supply × market value of the token
For example, consider Bitcoin. Right now, there are roughly 18.9 million bitcoins in existence, but theoretically, up to 21 million Bitcoins could be mined. Bitcoin's price is $17500 as of the time of this thread.
Therefore, the fully diluted valuation would be roughly 367.5 billion. Ultimately, this FDV tells you what Bitcoin's market cap would be if all 21 million Bitcoins were in circulation.
- That's all for today.

- Kindly follow @0xTosyn for more educational contents.

#HappyNewYear2023 #31daysofdefiterms

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More from @0xTosyn

ᴛ ◒ ꜱ ʏ ɴ Profile picture
Jan 29, 2023
Day 28 of 31 days crypto/Defi terminologies

Private sale vs. Publicsale

Some of these terms are really confusing especially trying to navigate all of these terms as a newbie

Do they mean the same thing?

A thread🧵
You get into a project's presale, whitelist spots are being hustled for, and Boom! You see some folks talking about participating in private sales😀

The confusion then set it.

What are public and private sales?
Both are all under a fundraising category, ICO, but they have different meanings.

Walk with me👇👇👇

✅️Private Sale

The ICO private sale period is the process in which tokens that are not yet announced to investors or open to the public are sold.
Read 11 tweets
ᴛ ◒ ꜱ ʏ ɴ Profile picture
Jan 28, 2023
Day 27 of 31 days crypto/Defi terminologies

IDO-Initial Dex Offering

What are IDOs?

How does it work, and how do investors benefit or profit from it?

A thread🧵
We have many offerings in the crypto/Defi space, the IDOs, the IEOs, the ICOs, and others, but this tweet would be limited to IDOs.

But then, there's something peculiar with these terms, which is the offering.
Offering in this context is a form of fundraising for Defi projects, but they are done through different means.

✅What are IDOs

Initial Dex Offering is simply launching a project, token, or coin
Via a Decentralized liquidity exchange.
Read 13 tweets
ᴛ ◒ ꜱ ʏ ɴ Profile picture
Jan 27, 2023
Day 26 of 31 days of crypto/Defi terminologies

Yield Aggregator

What are yield aggregators, and how do they operate?

A thread 🧵
Yield aggregators are also called auto compounders or yield optimizers, and they play a crucial role in the yield economy by combining  different  defi protocols
and strategies to maximize investors' profit.
Let me explain what I mean by this, just like how these ponzi sites promised returns on investment. Then these resources are pulled together and invested in different businesses, as the case may be, and then returns are distributed to these guys based on the agreement made.
Read 11 tweets
ᴛ ◒ ꜱ ʏ ɴ Profile picture
Jan 23, 2023
Day 22 of 31 days of crypto/Defi terminologies

Tokenomics

A big part of a crypto project's success can be attributed to its tokenomics.

But what does the term "Tokenomics" mean?

A thread🧵
In layperson’s terms, Tokenomics, put separately, is token Economics, which is the Economics of Tokens.

This includes everything from a token’s supply and how it’s issued to things like what utility it has.
One thing that determines market prices in the short run is demand and supply.

Then understanding the factors that will impact either supply or demand is vital to speculators and investors.
Read 11 tweets
ᴛ ◒ ꜱ ʏ ɴ Profile picture
Jan 21, 2023
Day 20 of 31 days crypto/defi terminologies

Smart contract

A Defi protocol can only be said to be complete when there is a smart contract deployment.

What really are smart contracts?

A short thread🧵
Smart contracts are tools that can automatically execute transactions if certain conditions are met without requiring the help of an intermediary company or entity.

What the smart contract does is cut that central body of authority.
It is more like the reason why decentralization is possible.
Whether it is obvious or not, intermediaries permeate our digital lives.

Even simply sharing a picture with friends online requires the services of an intermediary like Facebook or Twitter. .
Read 7 tweets
ᴛ ◒ ꜱ ʏ ɴ Profile picture
Jan 20, 2023
Day 19 of 31 days crypto/defi terminologies

Venture capitalist

Sometimes the term/title 'venture capitalist' is often misused by a lot of folks in the space

Who are venture capitalists?

A short thread🧵
Venture capitalists are known to be the prominent investors, the whales in the crypto/stock exchange market.

A venture capitalist (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake.
This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets.
Read 12 tweets

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