Over the past six months, 80% of the tokens from the new listings on Binance have lost value relative to the day of the start of trading on the exchange. This is written by a researcher under the nickname flow.
Looking at all the new listing of the past 6 months on the largest CEX, Binance, we note that >80% of tokens are down from their listing date.
The only exceptions are:
- $MEME: A meme coin
- $ORDI : No tier 1 VC
- $JUP + $JTO: Big Solana momentum
- $WIF: Another meme coin pic.twitter.com/Y8VQV6jt6T
The exceptions were the Dogwifhat (WIF) and Memecoin (MEME) memes, the Solana coins of the Jito (JTO) and Jupiter (JUP) protocols, as well as Ordi (ORDI).
"Most of the new Binance listings are tokens supported by first—tier venture capital and launched at crazy prices," the expert noted.
The average undiluted market capitalization of assets at the start of trading is ~ $4.2 billion, and the maximum valuation reaches $11.7 billion.
At the same time, projects often "do not have real users or a strong community."
Flow stressed that a portfolio made up of such coins would have lost about 18% in the designated six months.
"So yes, most often the tokens launched on Binance are not an investment tool — all their growth potential has already been lost. Instead, they represent an exit liquidity for insiders who benefit from the lack of retail traders' access to high—quality early investment opportunities," concluded the researcher.
According to him, the current approach to launching tokens is "unstable and discredits the crypto industry." The expert added that people are tired of being a source of liquidity and they are beginning to "realize this nonsense."
"The game has to change. Otherwise, our industry will have to pay for the long—term consequences of these abuses," flow said.
Recall that on May 16, Binance listed the NOT token of the Notcoin gaming Web3 project, which sank by ~ 65% after the start of trading.