1/ High FDV is not inherently bad.
The problem is that projects raise private rounds at one FDV, and then launch to retail at 20x higher FDV weeks later.
If retail could participate around the same price as the last VC round, everyone would be happy.
The problem is that projects raise private rounds at one FDV, and then launch to retail at 20x higher FDV weeks later.
If retail could participate around the same price as the last VC round, everyone would be happy.
2/ For founders, this is destructive long-term.
Their brief unicorn status is followed by a brutal grind down due to:
a) Airdrop farmers selling tokens as soon as possible
b) Constant sell pressure from private markets as they unlock
Their brief unicorn status is followed by a brutal grind down due to:
a) Airdrop farmers selling tokens as soon as possible
b) Constant sell pressure from private markets as they unlock
3/ Let's look at the FDVs of recent high profile airdrops at launch:
$DYM — $4.7B
$STRK — $27B
$ARB — $13.2B
$W — $14.25B
The average FDV of these 3 projects at launch is $14.7B, a 13.3x average premium to their previous private market valuation.
$DYM — $4.7B
$STRK — $27B
$ARB — $13.2B
$W — $14.25B
The average FDV of these 3 projects at launch is $14.7B, a 13.3x average premium to their previous private market valuation.
4/ Let's compare that to CoinList:
Our first five token launches of the year sold to retail at only a 1.04x average premium to what VCs had in previous rounds, with no cliff and shorter vesting — arguably better terms.
Our first five token launches of the year sold to retail at only a 1.04x average premium to what VCs had in previous rounds, with no cliff and shorter vesting — arguably better terms.
5/ If you’re a retail investor, which launch structure do you prefer for lower cost basis and higher upside?
At CoinList, we fight to level out the playing field and give our community of early adopters terms equal to, if not better, than private markets.
At CoinList, we fight to level out the playing field and give our community of early adopters terms equal to, if not better, than private markets.
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