LIVEMore than 80% of recently listed tokens on Binance are bleeding out. ls this a buy opportunity or a liquidity exit for insider traders
The value of the vast majority of tokens listed on binance over the past six months have fallen in value since they were listed, raising concerns for investors looking for the newest cryptocurrencies.
Of the 31 tokens analyzed, only five coins were highly rated, including Memecoin (MEME) and Ordi (ORDI) on the Bitcoin blockchain. As well as Jupiter (JUP), Jito (JTO) and Dogwifhat (WIF) tokens on the Solana (SOL) blockchain.
According to Andy Lian, an intergovernmental blockchain expert and author of NFT: From Zero to Hero, the fact that more than 80 percent of recently issued tokens are in the negative is indicative of the difficult market situation.
Lian said that the current state of the cryptocurrency market is described as calm, with some altcoins still trending despite a general lack of momentum overall.
"Many of the projects listed on Binance may have a longer growth period, the growth may not be instantaneous like in the previous bull market," he added.
Nevertheless, new tokens on Binance are listed with an average fully diluted valuation of more than $4.2 billion, despite the lack of a real user base. According to a researcher under the pseudonym Flow, this could significantly limit their growth potential.
"More often than not, tokens launched on Binance are no longer an investment vehicle - all of their upside potential has already been lost. Instead, they represent exit liquidity for insiders who capitalize on retailers' lack of access to quality early investment opportunities," Flow writes.
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