A new study by cryptocurrency analyst Ren & Heinrich shows patterns in the behavior of 26 tokens after they were added to the platform of the largest crypto exchange Binance.
Immediately after adding any token to the exchange, its value grows by an average of 41%, the analyst claims. But after three days, growth drops to 24%. At the same time, in the long term, listing on Binance does not have a particularly positive effect – on average, after 22 days, the asset goes into the red.
“The strongest growth occurs on the very first day after the listing of the token. How much the asset will grow and how long its growth will last depends on the project. For most coins and tokens, this positive trend is rather short-term. Within two weeks, almost half of the studied tokens went into the red. True, most of these assets were added to the site during a bearish trend,” the analyst writes.
An example is the MAGIC token, which was listed on Binance on December 12. Immediately after the listing, the MAGIC price rose by 82%, but since then the asset has lost almost 50% of its price and has gone negative.
Note that according to a study by the University of Technology Sydney, from 10% to 25% of Coinbase listings over the past four years were accompanied by insider trading.
Source: Bits
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