Over 80% of newly listed cryptocurrencies are in the red on Binance, the world’s largest cryptocurrency exchange in terms of trading volume.
More than 80% of the tokens listed during the past six months have fallen in value since their listing, raising concerning implications for investors looking for the newest cryptocurrencies.
From the 31 analyzed tokens, only five coins have appreciated, including Memecoin (MEME), Ordi (ORDI), the Solana-based Jupiter (JUP) token, Jito (JTO) and Dogwifhat (WIF), according to pseudonymous crypto researcher Flow’s May 17 X post:
Binance tokens listed during the past six months. Source: Flow
The fact that over 80% of newly-launched tokens are in the red signals a challenging market environment, according to Anndy Lian, intergovernmental blockchain expert and author of NFT: From Zero to Hero.
Lian told Cointelegraph 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. He added:
“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, 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.”
Explore Cointelegraph’s guide to discover the tools and strategies essential for trading cryptocurrency both safely and profitably.
Related: Dogwifhat en route to $10? WIF is now the third-biggest memecoin as whales hold tight
Memecoins: the flavor of the month for retail investors
Despite having no venture capital backing, the Ordi token was the most profitable, up over 261% since its launch, while controversial memecoin Dogwifhat took second place,…
..
