Quacklington Learn

What is Liq/FDV?

Liq/FDV means liquidity divided by fully diluted valuation. It is a fast way to judge how much real trading depth sits underneath the token’s implied valuation.

Why it matters

A token can look exciting on paper while still being flimsy if there is very little liquidity relative to the valuation being claimed. Low Liq/FDV usually means the price can move violently with small capital and become harder to exit cleanly.

Lower ratio
More fragile market
Higher ratio
Usually sturdier
Quacklington bucket
Structure

What it does not tell you

Liq/FDV is useful, but it is not enough by itself. A token can still be poor quality if concentration is ugly, contract permissions are dangerous, or the move is already late-cycle.

How Quacklington uses it

Quacklington uses Liq/FDV as part of the Structure score because it says something important about how believable and tradeable the market really is.