New Crypto Listings on Binance Struggle as Only a Handful See Appreciation
Summary:
The vast majority of newly listed cryptocurrencies on Binance have dipped in value, with only five out of 31 analyzed tokens appreciating. This significant downfall suggests a challenging market environment for investors seeking new cryptocurrencies. The state of the crypto market has been described as stagnant, with an inflated fully diluted valuation possibly limiting the growth potential of new tokens. Despite several tokens lacking venture capital backing, Ordi token and Dogwifhat - a controversial memecoin - have seen significant price surges.
An analysis reveals that over four-fifths of newly introduced cryptocurrencies on Binance, the world's biggest cryptocurrency exchange, have seen a drop in value since their introduction. The same analysis, which looked into 31 tokens recently listed, indicates that only a handful, five to be exact, have seen an increase in their value. Those successful five include the new memecoin (MEME), Ordi token (ORDI), Solana-based Jupiter (JUP), Jito (JTO), and Dogwifhat (WIF).
The revelation that 80% of recent additions on Binance are experiencing a downturn raises concerns for investors keen on the most recent cryptocurrencies. The implications may present a tough market environment, with the state of the cryptocurrency realm described as stagnant. Certain altcoins continue to trend despite an evident lack of overall momentum.
The majority of projects on Binance may need a longer growth period suggesting that growth may not occur immediately. New tokens on Binance often enter the platform with a lofty fully diluted valuation exceeding $4.2 billion, even without a substantial user base. This raises concerns about the investment viability of Binance-launched tokens, as the inflated valuations might diminish the growth possibilities. In many instances, these tokens have transformed into exit liquidity pools for insiders who exploit retail inaccessibility of early investment opportunities.
Ordi token, unbacked by venture capitalists, emerged as the most profitable among those investigated, with a 261% gain in value since its launch. Dogwifhat, a controversial memecoin, grabbed the second spot with a price surge by more than 117%. With the substantial growth of memecoins largely driven by retail craze, these coins may thrive irrespective of the altcoin market segment. Several retail investors migrated to memecoin contributing to the performance of the memecoin tokens.
The hype surrounding memecoins becomes evident with Pepe, reaching a new all-time high above $0.000010 on May 13th. This happened the day after Keith Gill´s resumption of social media activities, associated with the 2021 GameStop short squeeze. Cashing in on the retail enthusiasm, one strategic Pepe trader converted $3,000 to a whopping $46 million within a month, alongside Pepe’s climb to its recent all-time high.
Published At
5/17/2024 2:25:38 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.