HomeBinanceData Shows that More than 80% of Recently Listed Crypto Assets on...

Data Shows that More than 80% of Recently Listed Crypto Assets on Binance Have Experienced a Decrease in Value

-


New Binance Token Listings Facing Value Decline

The latest trend in the cryptocurrency market has left many investors feeling uneasy as over 80% of newly listed tokens on Binance, the world’s largest digital asset exchange, have seen a decline in value. In the past six months, these tokens have experienced a significant drop in value since their initial listing, causing concern among those looking to invest in the latest cryptocurrencies.

A recent analysis by crypto researcher Flow revealed that out of 31 tokens analyzed, only five have seen an increase in value. The most profitable of these tokens was the Ordi token, which saw a remarkable 261% increase since its launch, despite lacking venture capitalist backing. The meme coin Dogwifhat followed closely behind, surging over 117%.

Flow pointed out that many new Binance listings are backed by top-tier venture capitalists and launch at inflated valuations, with some tokens reaching over $11 billion in fully diluted valuation on the listing date. However, these projects often lack real users or a strong community, leading to a decline in value for investors.

The current market dynamics have also come under scrutiny, with economist Alex Kruger noting that many tokens are designed to pump and then dump due to short vesting schedules, fake metrics, and a focus on hype rather than user acquisition. This approach not only harms the token itself but also discredits the entire crypto industry.

Crypto researcher Flow emphasized the need for a new approach to token launches, highlighting the damage caused by releasing tokens at high fully diluted valuations. He suggested that launching at lower valuations allows for repricing and generates momentum and interest in the market, benefiting both investors and the industry as a whole.

As the crypto market continues to evolve, it is clear that a more sustainable and transparent approach to token launches is needed to ensure the long-term success and credibility of the industry. Investors are advised to exercise caution and conduct thorough research before investing in new cryptocurrencies to avoid potential losses.

LATEST POSTS

Is the Whale Depositing $21M in DeFi Tokens to Binance Justin Sun?

Whale Deposits $21 Million In DeFi Tokens To Binance In a surprising turn of events, a dormant whale made a massive...

The Potential Value of $50 in Bitcoin if Michael Saylor’s Prediction Comes True

Here's How Much $50 Of Bitcoin Could Be Worth If Michael Saylor's Prediction Is Correct Title: Michael Saylor's Bold Prediction: How $50 of Bitcoin Could...

ICBC, the world’s largest bank, commends the growth of Bitcoin and Ethereum as groundbreaking financial assets

ICBC Report: Bitcoin as Gold, Ethereum as Digital Oil - A Comparative Analysis ICBC Report Highlights Bitcoin as Gold and Ethereum as Digital Oil The world’s...

Uniswap Labs Acquires Crypto: The Game, Transforming it into a 24/7 Crypto Reality Show

Uniswap Labs Acquires Crypto: The Game (CTG) After Second Season Sells Out in 13 Minutes The second season of Crypto: The Game (CTG) has taken...

Most Popular