Why don’t new coins on Binance pump? Decoding Edition 📒

Like and bookmark, and never be a bag holder again 🥘

Statement: This post only analyzes the new coins recently listed on Binance, not long-term trends. Subsequent wash trading may still lead to a pump. Binance is still the largest and safest exchange in the world, and I personally use Binance.

⚠️ The recent crimes of new coins can be seen directly in the chart ⚠️

🎉 The last chart is a positive example 🎉

1️⃣ Sky-high listing fees

A coin needs to be listed on exchanges like OKEx or Binance. It must meet several criteria: user base, trading volume, asset status, and these basic requirements. Only with these fundamentals can one qualify to apply for listing on Binance.

The listing fee on Binance is to give 10%-20% of the coins to Binance. If your total supply is 1 billion, that means you are giving 200 million coins directly to Binance. Although these coins are nominally said to be for liquidity, they will eventually end up in the hands of retail investors on Binance, meaning it costs over 100 million USD to list on Binance.

2️⃣ Listing information leakage (speculation)

There have been continuous reports of internal information leakage before listings on Binance. Where there’s smoke, there’s fire 🌊. Before being listed on Binance, some addresses bought a large amount. I don’t believe anyone can guess which coin will be listed on Binance without any information, and if they guessed correctly, they could make large purchases. It’s likely an issue of internal corruption.

3️⃣ Leaders exit first

Those at the first level should know better. If you take a lot of chips and after the listing, the first thing you do is sell, the ones who buy are those retail investors who only focus on the secondary market and don’t pay attention to the primary market, resulting in a situation where they are stuck right after listing.

Most of the coins mentioned above are VC coins. During airdrops, the inability to redeem and the rush leads to retail investors not being able to get chips in time, while those with chips will sell them faster and at a better price (leaders exit first 🏃).

4️⃣ Conclusion:

Most new coins listed on Binance are not worth buying. It is advisable to first understand the total supply, expected market value, chip distribution, and other factors before diving in. It’s best to wait for a drop of 50%-80% after listing for better cost-performance and not be a bag holder.