WHY ARE NEW COINS FALLING?

Crypto projects that have gone through private sales, pre-sales and various investment distributions are starting to list on stock exchanges in order to take part in the industry. Binance supports these projects with Airdrops and Lauchpool. So why do these major coins rise and fall rapidly?

The selling pressure created during the stock market listing is very effective in these declines. Those who own the cryptocurrency prior to listing, such as a pre-sale, airdrop or private sale, put intense pressure on the selling board during the exchange listing.

As a result of this pressure, purchases weaken, causing the cryptocurrency to fall below its listing price.

For example, a cryptocurrency with a supply of 10 billion units is listed on the Binance exchange with 100 million units. In this case, because the circulating supply is low and the demand is high, the stock exchange listing takes place at high prices. However, investors who own the cryptocurrency beforehand, such as a pre-sale, airdrop or private sale, increase the circulating supply by piling up the sale board. That's why it becomes very difficult to make a profit when entering these projects and it becomes annoying for the project to drop even more while you wait for it to reach the price you bought it for. Stay healthy and profitable.