Is it really ICO season now? What secrets are hidden behind those ridiculously high FDV figures?

Many people hear the term FDV and their first reaction is that project teams set it arbitrarily—decided on a whim, without basis. But the reality is far more complex.

**How exactly does FDV come about?**

In fact, a project's FDV is essentially determined early in the fundraising process. Not on the eve of TGE, nor at the start of ICO, but during the first meeting between the founding team and VCs, when that valuation range is almost locked in.

Why is that? The logic is straightforward. Early-stage VCs look at two core variables: first, how much equity they want to hold in the project; second, how much they believe the project is worth. Multiplying these two numbers determines the valuation for the funding round. From this valuation, considering token distribution ratios, community, and liquidity portions, the FDV range is basically set.

In other words, projects with high FDV are not bubbles inflated later on; they are numbers "set" from day one of fundraising.