Binance to Prioritize Low-Cap Tokens Amid High FDV Criticism, US$155B Unlocks from 2024 to 2030

The cryptocurrency market is currently grappling with the challenges posed by low float, high fully diluted valuation (FDV) token launches. These tokens, characterized by a small circulating supply and high valuation, have been criticized for their predatory tokenomics, often leaving little upside potential for retail investors. Binance has responded to these concerns by promising to list more low-market cap projects, prioritizing community rewards like airdrops over insider allocations. This shift aims to address the issues of aggressive valuations and selling pressure from future unlocks. Binance Research noted that US$155B worth of tokens will be unlocked from 2024 to 2030. The trend of high FDV token launches has been compared to the mega IPOs of 2020-2021, where early returns were largely captured in private funding rounds. Historical data shows that the FDV of high-profile token launches tends to land in a range of 1-3 million ETH. Despite the criticisms, some argue that the problem lies in the overvaluation of venture-backed tokens at launch, suggesting that investors should avoid overvalued tokens. The debate continues as the market seeks a balance between fair valuations and investor protection.