How are fully diluted shares calculated for digital currencies?

3 answers

• Andreas BoyatzoglouDec 26, 2024 · a year ago
  Calculating fully diluted shares for digital currencies involves considering the total supply of coins or tokens and any potential future supply that could be added. To calculate this, you would take the current circulating supply and add any additional supply that could be released in the future, such as from mining rewards or token vesting schedules. This calculation helps investors and analysts understand the potential future dilution of a digital currency's market cap and ownership distribution.
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• MordredMooseNov 23, 2022 · 4 years ago
  When calculating fully diluted shares for digital currencies, it's important to take into account any locked or vested tokens that may become available in the future. This can include tokens held by the project team, advisors, or early investors. By including these potential future supply additions, the calculation provides a more accurate representation of the total supply and potential dilution of a digital currency.
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• Hammond BjerregaardSep 13, 2024 · 2 years ago
  Fully diluted shares for digital currencies can be calculated by taking the current circulating supply and adding any potential future supply that could be released. This calculation helps investors understand the potential impact of future supply additions on the market cap and ownership distribution. For example, if a digital currency has a large amount of tokens locked up in contracts or held by the project team, the fully diluted shares calculation would include these tokens to provide a more comprehensive view of the currency's potential dilution.
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