With the launch of the Bitcoin spot ETF and the halving narrative, BTC hit a record high of $73,000 in March this year. Investor enthusiasm reached a new climax, and many project parties also took this opportunity to issue their tokens one after another 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 an increase
According to statistics posted by cryptocurrency researcher Flow on the social platform X yesterday (17), of all the new tokens listed by Binance, the world's largest exchange, in the past 6 months, more than 80% of the tokens have fallen significantly compared to their prices on the day of listing, and only five tokens have achieved growth.
They are: 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.
In response, Flow commented:
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.
Analysts: The overall market lacks upward momentum
In addition, blockchain expert and author of the book "NFT: From Zero to Hero" Anndy Lian also expressed her views on this, saying that 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.
Lian went on to add that memecoins 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. In fact, if you look at the trading volume, the top six cryptocurrencies are basically meme coins.
What is the status of the top ten currencies?
It is worth noting that Bitcoin has refreshed its historical highs many times, but most of the top ten mainstream tokens have not yet reached the level of the 2021 bull market:
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 currency has also increased several times compared with Q4 last year. It is the only project among the top ten tokens that has broken the historical high.
If you want to know more about the relevant knowledge of the cryptocurrency circle and the latest cutting-edge information, please click on the avatar to follow me. I have been professionally researching and investing for twelve years. I am your 24-hour wealth appreciation expert. I will provide you with free guidance. See Zhuye
