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In a recent analysis, over 80% of newly listed cryptocurrencies on Binance, the world's largest digital asset exchange, have seen a decline in value. This trend has raised concerns for investors seeking to invest in the latest digital assets. Out of 31 tokens analyzed, only five appreciated in value, including the Ordi token (ORDI) and the meme coin Dogwifhat (WIF). Despite lacking venture capitalist backing, ORDI was the most profitable, with a 261% increase since its launch. Most new Binance listings are backed by top-tier venture capitalists and launch at inflated valuations, often lacking real users or a strong community. The average fully diluted valuation (FDV) on the Binance listing date exceeds $4.2 billion. Crypto researcher Flow suggests that many tokens launching on Binance are not viable investment vehicles, as their upside potential is already exhausted. Instead, they serve as exit liquidity for insiders exploiting retail investors' limited access to early investment opportunities. Flow also criticized the current market dynamics, noting that many tokens are designed to pump and then dump due to short vesting schedules, fake metrics, and a focus on hype rather than user acquisition. Despite these concerns, the potential of DeFi and BRC 20 tokens remains promising, with a need for a new approach to token launches. Lower FDVs could benefit secondary market traders and generate momentum and interest. The crypto industry continues to evolve, and while there are challenges, the future is optimistic.

In a recent analysis, over 80% of newly listed cryptocurrencies on Binance, the world's largest digital asset exchange, have seen a decline in value. This trend has raised concerns for investors seeking to invest in the latest digital assets.

Out of 31 tokens analyzed, only five appreciated in value, including the Ordi token (ORDI) and the meme coin Dogwifhat (WIF). Despite lacking venture capitalist backing, ORDI was the most profitable, with a 261% increase since its launch.

Most new Binance listings are backed by top-tier venture capitalists and launch at inflated valuations, often lacking real users or a strong community. The average fully diluted valuation (FDV) on the Binance listing date exceeds $4.2 billion.

Crypto researcher Flow suggests that many tokens launching on Binance are not viable investment vehicles, as their upside potential is already exhausted. Instead, they serve as exit liquidity for insiders exploiting retail investors' limited access to early investment opportunities.

Flow also criticized the current market dynamics, noting that many tokens are designed to pump and then dump due to short vesting schedules, fake metrics, and a focus on hype rather than user acquisition.

Despite these concerns, the potential of DeFi and BRC 20 tokens remains promising, with a need for a new approach to token launches. Lower FDVs could benefit secondary market traders and generate momentum and interest. The crypto industry continues to evolve, and while there are challenges, the future is optimistic.

Disclaimer: Includes thrid-party opinions. No financial advice. May include sponsored content. See T&Cs.
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