Crypto glossary
Low float, high FDV
Low float, high FDV describes tokens that launch with a small share of supply trading but a huge fully diluted valuation, leaving heavy unlocks ahead.
The pattern combines two numbers. The float is the circulating supply, often 5–15% of the total at launch, while the fully diluted valuation multiplies the price by every token that will ever exist. When only a sliver trades, a modest amount of buying can push the price, and therefore the FDV, to levels that would be impossible if the whole supply were liquid.
The phrase became a common criticism in 2024, when many venture-backed tokens listed at multi-billion FDVs and then fell steadily as team and investor allocations unlocked month after month. Retail buyers effectively paid the highest prices while early backers, who entered at far lower valuations, waited for their cliffs to end.
A low float is not automatically a scam, and some projects keep supply locked for legitimate reasons. But buyers should look at the unlock calendar, the entry price of private rounds and how much new supply must be absorbed per month relative to trading volume.
Example
A token lists with 8% of its supply circulating at a 100 million dollar market cap, which implies an FDV of 1.25 billion; when the first investor unlock doubles the float, the price drops sharply.