In this episode of the Unchained podcast, hosts Ari Paul and Jose Macedo delve into the real value of crypto tokens, particularly how token unlocks can influence their prices. They distinguish between circulating supply and fully diluted valuation (FDV), shedding light on the often neglected unrealized gains held by teams and early investors. Macedo presents the "unrealized gains to market cap ratio" as a critical measure for predicting price movements following unlocks, noting that a high ratio may signal upcoming sell pressure. The discussion wraps up with potential strategies to lessen the impact of large token unlocks, such as modifying vesting schedules and considering alternative distribution models like ICOs. Ultimately, the episode underscores the necessity of diligent research and comprehending the motivations of different market players when evaluating token value.
