With the launch of Bitcoin spot ETFs and the halving narrative, BTC hit an all-time high of $73,000 in March this year. Investor enthusiasm reached a new climax, and many project parties took this opportunity to issue their tokens in an attempt to seize the market.
However, these new tokens tend to fluctuate wildly, and most have become tools for VCs and project owners to reap profits from retail investors.
Only 5 of the new tokens listed on Binance in the past 6 months have achieved growth
Of all the new tokens listed by Binance in the past six months, more than 80% are currently trading at a discount to their listing day prices, with only five tokens seeing growth.
Meme coin MEME (8.5%), Bitcoin inscription ORDI (+261.9%), Solana ecosystem’s JUP (+58.46%) and JTO (+62.08%), and Solana’s dog meme coin WIF (+117.69%):
Looking at all tokens listed on Binance, the largest centralized exchange, in the past 6 months, we noticed that more than 80% of tokens have dropped from their listing prices, with the only exceptions being MEME, ORDI, JUP, JTO, and WIF.
Projects launch their tokens on CEXs with the highest possible FDV, which provides liquidity for VCs and insiders to exit. The result: new coins are no longer great investments.
If you invested the same amount of money to buy new coins every time Binance listed them, your total assets would have shrunk by more than 18% so far.
Therefore, the newly launched tokens on Binance are no longer good investment targets, and all their upside potential has been taken away. Due to the lack of high-quality early investment opportunities, retail investors are forced to become the liquidity for VCs and project parties to exit.
In many ways, the game is rigged.
The overall market lacks upward momentum
The current market environment is full of challenges:
Many projects listed on Binance require a longer growth cycle. The current crypto market as a whole still lacks momentum, but some altcoins are still on an upward trend.
Therefore, meme coins have become a hot spot for retail investment recently.
Memecoin is different from other altcoins in that it is driven primarily by retail interest.
This can be seen from the growth history of ORDI and WIF, and in fact, if you look at the volume, the top six cryptocurrencies are basically meme coins.
What is the status of the top ten currencies?
Bitcoin has hit all-time highs several times, but most of the top ten mainstream tokens have not yet reached the levels of the 2021 bull run:
ETH's rising momentum is weak: Due to the decline of ecological innovation and the ambiguous attitude of the US SEC on Ethereum spot ETF, Ethereum has not yet experienced a large-scale outbreak in this round of bull market, and the exchange rate with Bitcoin has even fallen to a low point many times;
BNB new coin mining leads to rising coin price: BNB is both the governance token of the BSC chain and the platform coin of the Binance exchange. Due to Binance's continuous launch of new coin mining projects this year, its token price has continued to rise, breaking the $600 mark many times, but it is still a short distance from its historical high.
SOL makes a comeback: Solana, which was greatly affected by the collapse of FTX exchange, has seen its price rise from tens of dollars last year to the current $170 this year due to the prosperous development of its ecosystem, including the Saga mobile phone and the meme coin craze.
TON becomes a dark horse public chain: TON, backed by Telegram, a huge communication software, has been very active this year. Not only has it linked with Telegram many times, but it has also relied on its ecological development to attract a lot of attention. The price of the coin has also increased several times compared to Q4 last year. It is the only project among the top ten tokens that has broken the historical high.
The performance of several other public chains such as XRP and AVAX is also not satisfactory. The ecological development is not very active, and the currency prices are even lower than last year's level.
Meme coins and value coins are not completely opposite. For most retail investors, both are tracks that need to be participated in.
Generally, there are three stages in a bull market: Bitcoin rises; after Bitcoin rises, Ethereum rises, and drives the hot altcoins to soar together. Finally, the crypto market enters a comprehensive rise stage, and meme coins begin to rise.
But in this cycle, the rotation order of sectors seems to have been rearranged, with meme coins taking the lead and becoming the main line of this cycle.
After the meme broke out, will the altcoin season dominated by so-called value coins come? This is also the question that retail investors are most concerned about.
At a time when the market is generally pessimistic about value coins, this may be the best time to build a position
The golden rule of investment has always been "I take what others discard, and I discard what others take." As meme coins account for an increasing proportion of everyone's investment portfolio, truly high profit-loss ratio Alpha opportunities begin to emerge in the value coin sector.
Later, I will bring you analysis of leading projects in other tracks. If you are interested, you can click to follow. I will also organize some cutting-edge consulting and project reviews from time to time. Welcome all like-minded people in the cryptocurrency circle to explore together. If you have any questions, you can comment and ask questions