CoinGecko is considering the introduction of a new metric to better assess cryptocurrency valuations, addressing criticisms of current methods like market capitalization and fully-diluted value (FDV). This move comes in response to a proposal to burn 45% of Hyperliquid's HYPE tokens, which are mostly unallocated and unlikely to circulate. Hyperliquid, a decentralized exchange, has 1 billion HYPE tokens in total, with only 270 million currently in circulation. Critics argue that including non-circulating tokens in FDV calculations misrepresents the token's true value.
The debate has gained traction among investors and entrepreneurs who support the token burn proposal, urging a reevaluation of standard tokenomics practices. CoinGecko's potential new metric aims to provide a more accurate reflection of a token's supply and valuation, addressing these industry concerns.
CoinGecko Explores New Metric Amid Token Valuation Concerns
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