Former Goldman Sachs executive Raoul Pal is making waves in the crypto world with his prediction that a controversial sector of altcoins is set to outperform other crypto assets in the coming months. Pal, who has a following of 1 million on the social media platform X, believes that tokens with high valuations and low initial circulating supplies, known as low float/high fully diluted valuation (FDV) tokens, are poised for success.
Despite the market’s general disdain for these types of tokens, Pal argues that they have the potential to see significant growth. He notes that while low float/high FDV tokens often experience a 70% drop on their initial float, future unlocks are already priced in, leading to undervaluation. As demand for these tokens increases, driven by network activity or speculative interest, Pal believes they will be more asymmetric to the upside in a bull market.
Pal emphasizes that these tokens are currently under-owned due to their bad reputations, but any increase in demand could lead to substantial gains. He advises caution and warns against overstaying one’s welcome in these assets.
As the crypto market enters the bull market phases of Crypto Summer and Crypto Fall, Pal’s prediction of a “hated rally” in these altcoins is gaining attention. With increasing demand and limited supply, these tokens could be the dark horses of the market.
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