untitled design

80% of tokens from new listings on Binance collapsed in price

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.

The exceptions were the meme coins Dogwifhat (WIF) and Memecoin (MEME), Solana protocol coins Jito (JTO) and Jupiter (JUP), as well as Ordi (ORDI).

“Most of the new Binance listings are tokens backed by Tier 1 venture capital and launched at crazy prices,” the expert noted.

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.

“So yes, most often the tokens launched on Binance are not an investment vehicle – all their growth potential has already been lost. Instead, they represent exit liquidity for insiders who benefit from retail traders' lack of access to quality early investment opportunities,” the researcher concluded.

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.”

“The game has to change. Otherwise, our industry will have to pay for the long-term consequences of these abuses,” said flow.

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

You may also like

Forrest Gump, the 10 curiosities
Entertainment
Susan

Forrest Gump, the 10 curiosities

Thirty years does, Forrest Gump ran unstoppable in the theaters in the masterpiece of Robert Zemeckis with Tom Hanks. Loosely

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular