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Binance listing could be a dead end for tokens, epic new research shows
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A recent analysis conducted by a leading cryptocurrency and macro researcher, known as “Flow,” drew attention to trends related to tokens listed on Binance, the world’s leading cryptocurrency exchange.
The examination of the advertisements of the last six months on Binance reveals a worrying pattern: over 80% of tokens have suffered a decline in value since their initial listing. This finding raises serious questions about the feasibility and sustainability of these projects, especially considering the significant assessments they require at launch.
While a handful of tokens, such as ORDI, JTO, JUP and WIFE, have managed to counteract the downward trend, they represent exceptions rather than the norm. In contrast, tokens such as NFP, PORTAL, AEVO and others have suffered substantial losses, indicating a prevailing problem of overvaluation followed by rapid depreciation.
Looking at all the new listings over the last 6 months on the largest CEX, Binance, we see that over 80% of tokens are down since the listing date.
The only exceptions are:
– $MEME: A meme coin
– $ORDERS : No Tier 1 VCs
– $JUP + $JTO: Great momentum from Solana
– $WIF: Another meme coin pic.twitter.com/Y8VQV6jt6T— flow (@tradetheflow_) May 17, 2024
Flow’s analysis suggests that Binance listings may no longer offer profitable investment opportunities, but rather serve as exit strategies for insiders and venture capitalists.
In essence, it is widely recognized that ensuring a listing on a major stock exchange represents a significant milestone for any new token, with investors anticipating a boost to their investment. Likewise, it’s no secret that these listings often serve as opportunities for holders to capitalize on token growth and cash in on their cryptocurrency holdings.
However, the question arises: is there any real cause for concern behind this superficial drama, or is it simply an accepted consensus among market participants?
About the author
Gamza Khanzadaev
Financial analyst, trader and cryptocurrency enthusiast.
Gamza graduated in Finance and Credit with a specialization in securities and financial derivatives. He then obtained a master’s degree in banking and asset management.
He wants to help cover economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.