#Binance #CryptoExchange #TokenListing #VentureCapital #MemeCoins #Cryptocurrency #MarketTrends #CryptoResearch
In a recent analysis, it was discovered that over 80% of the tokens listed on Binance—the leading crypto exchange by trading volume—have declined in value since their introduction in the past six months. This insight, shared by the crypto researcher Flow, highlights a discerning trend where tokens backed by significant venture capital (VC) firms, often entering the market at towering valuations, tend to underperform. In contrast, a select few tokens, primarily meme coins or those without major VC support, have seen price surges post-listing, with increases over 50% in some cases.
The study conducted by Flow reveals that out of 31 tokens scrutinized, only 5 experienced an uptick in their price since launching on Binance. These tokens include ORDI, JUP, WIF, JTO, and MEME, with ORDI leading the pack with an impressive 262% gain. This exceptional performance starkly contrasts with VC-backed tokens like NFP (Binance Labs), OMNI (Pantera Capital), and AEVO (backed by Coinbase, Paradigm, and Dragonfly), which have seen substantial losses.
Flow suggests that Binance listings now offer “exit liquidity” for Venture Capitals, marking a significant shift from a year ago when listings were associated with a potential value surge. The analysis posits that many of these highly-valued projects lack a substantial user base or vibrant community, contributing to their post-listing price drops. This situation is exacerbated by the fact that tokens are often launched with inflated fully diluted values (FDVs), sometimes reaching up to $11 billion, despite having minimal to no real-world application or user engagement at the time of listing.
Indeed, the landscape of crypto trading and investment through platforms like Binance has evolved. With Binance’s dominance and liquidity, it’s become a preferred venue for insiders seeking to offload their holdings, often at the expense of uninformed retail investors who miss out on early, quality investment opportunities. This dynamic underscores a broader trend within the cryptocurrency market where the promise of decentralization and democratized access to investment seems increasingly overshadowed by insider-dominated maneuvers that exploit retail investors.
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