Over the past six months, 80% of tokens from new listings on Binance have lost value relative to the day trading began on the exchange. A researcher under the nickname flow writes about this.
Looking at all the new listing of the past 6 months on the largest CEX, Binance, we note that >80% of tokens are down from their listing date.
The only exceptions are:
— $MEME: A meme coin
— $ORDI : No tier 1 VC
— $JUP + $JTO: Big Solana momentum
— $WIF: Another meme coin pic.twitter.com/Y8VQV6jt6T— flow (@tradetheflow_) May 17, 2024
The exceptions were the meme coins Dogwifhat (WIF) and Memecoin (MEME), Solana protocol coins Jito (JTO) and Jupiter (JUP), as well as Ordi (ORDI).
The average non-diluted market capitalization of assets at the start of trading is ~$4.2 billion, and the maximum valuation reaches $11.7 billion.
However, projects often “don’t have real users or a strong community.”
Flow emphasized that a portfolio made up of such coins would have lost approximately 18% over the designated six months.
According to him, the current approach to launching tokens is “unsustainable and discredits the crypto industry.” The expert added that people are tired of being a source of liquidity and they are beginning to “realize this nonsense.”
On May 16, Binance listed the NOT token of the gaming Web3 project Notcoin, which dropped by ~65% after the start of trading.
Source: Cryptocurrency
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