Analysis of New Altcoins Listed on Binance
The profitability of new altcoins listed on Centralized Exchanges (CEX) such as Binance has been called into question by a crypto and macro researcher known as “Flow.” According to Flow’s detailed review, a significant decline in the value and performance of new tokens listed on platforms like Binance has been observed.
Flow’s analysis revealed that 80% of the new altcoins listed on Binance in the past six months have experienced a substantial decrease in value, falling below their initial listing price. Tokens like BLUR and PORTAL saw significant drops in performance, with some recording decreases of over 45% and 69.2%, respectively.
Despite the overall decline, a few tokens managed to buck the trend and record gains. Meme coins like Ordinals (ORDI) and Dogwifhat (WIF) saw significant increases, along with others like Jito (JTO) and Jupiter (JUP) which saw gains above 50%.
Flow highlighted the fact that investing in newly listed tokens on Binance has become a risky game, with many projects launching at high Fully Diluted Valuations (FDV) and lacking real users or community support. This trend has led to unsustainable growth and a negative impact on the broader crypto industry.
Economist Alex Kruger echoed Flow’s sentiments, stating that most tokens launching nowadays are designed to pump and dump, with founders focusing on hype rather than user acquisition. Automated trading bots and market makers further disadvantage ordinary investors by manipulating token prices.
Overall, Flow’s analysis sheds light on the challenges faced by new altcoins listed on platforms like Binance and raises important questions about the sustainability and profitability of these investments in the current market environment.
