June 24, 2024
Over 80% of Recently Listed Tokens on Binance are in Decline
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Over 80% of Recently Listed Tokens on Binance are in Decline

Over 80% of newly listed cryptocurrencies are in the red on Binance, the world’s largest cryptocurrency exchange by trading volume. In the past six months, more than 80% of the listed tokens have depreciated since their listing, raising concerns for investors seeking the latest cryptocurrencies.

From the 31 listed tokens analyzed, only five coins have appreciated, including Memecoin (MEME), Ordi (ORDI), the Solana-based Jupiter (JUP) token, Jito (JTO), and Dogwifhat (WIF), according to a May 17 post on X by pseudonymous crypto researcher Flow.

Binance tokens listed during the past six months. Source: Flow

Challenging Market Environment for New Tokens

The fact that over 80% of newly-launched tokens are in the red signals a challenging market environment, according to Anndy Lian, an intergovernmental blockchain expert and author of “NFT: From Zero to Hero.” Lian explained that the current state of the cryptocurrency market has been described as calm, with certain altcoins still trending despite a general lack of momentum overall.

“Many of the projects listed on Binance may have a longer period of growth, the growth may not be instant like the previous bull market.”

However, Lian highlighted that the new tokens on Binance are listed with an average fully diluted valuation of over $4.2 billion, despite not having a real user base. This can significantly limit their upside potential, according to pseudonymous researcher Flow.

“More often than not, tokens launching on Binance are not investment vehicles anymore – all their upside potential is already taken away. Instead, they represent exit liquidity for insiders who capitalize on retail lack of access to quality early investment opportunities.”

Memecoins Lead in Profits Despite Market Challenges

Despite the challenging environment, some listed tokens have performed well. The Ordi token, despite having no venture capital backing, was the most profitable, up over 261% since its launch. Controversial memecoin Dogwifhat took second place with an over 117% price increase. Retail interest has been the main factor driving memecoin growth, which can operate independently from the altcoin market segment, according to Lian:

“Since some of them are long-term hodl, many of the retail investors swarmed to memecoin. You can see that from the performance of MEME and WIF. In fact, if you looked the the trading volume. Six of the top trading coins are memes.”

Further showcasing the hype around memecoins, Pepe (PEPE) hit a new all-time high of above $0.000010 on May 13, a day after Keith Gill — the man widely credited with initiating the 2021 GameStop short squeeze — returned to social media. Capitalizing on the retail hype, one savvy Pepe trader turned $3,000 into $46 million within a month during Pepe’s rise to its recent all-time high.

Image by Gerd Altmann from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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