Preference for memecoins reflects investors’ frustration with high-FDV crypto projects

The growing preference of crypto market participants towards character or celebrity memecoins has reflected investors’ disappointment with crypto projects that have high fully diluted value (FDV) and low initial circulating market capitalizations, Bitcoin.com reported, citing a June research report by Kucoin. "A high FDV potentially points to a dilution of the token’s value if and when the locked tokens or coins enter circulation," according to the report. Retail investors tend to avoid high-FDV crypto projects due to their limited price discovery opportunities, which leads to challenges in wealth creation, the report highlighted.