Raoul Pal, a former Goldman Sachs executive, thinks a specific type of altcoin is about to take off. He’s talking about coins with high valuations and small initial supplies, which are often called “low float/high FDV” tokens.
Why the Hate?
The crypto world generally dislikes these tokens because their prices can plummet when more coins are released into circulation. Pal says this is because the future release of these coins is already priced in, even though most releases don’t lead to big sell-offs.
The Upside
But once the initial supply is out there, the focus shifts to demand. Pal believes that if these tokens show strong demand, their prices could skyrocket. This is because the limited supply means even a small increase in demand can drive prices up significantly.
A Bullish Argument
Pal argues that these tokens are currently undervalued because of their bad reputation. He thinks that as the crypto market heats up, these “hated” tokens could become the hottest investments.
Important Note: This is just one expert’s opinion. Always do your own research before investing in crypto. The crypto market is volatile and risky, and you could lose money.
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