STOP !
Read this and see why you should NOT!
Seriously read this, its long but worth the read!
The above list 👆 shows the perfomance of launched tokens in the last 6 months.
Why is this happening? Its very very simple!
*I will try keep this simple for people who dont understand tokenomics*
As $ENA is currently pumping lets use this as an example, though i am using $ENA the same applies for pretty much all projects launched on large exchanges in the last year.
ENA had a funding valuation of $300 million with 25% of tokens going to investors(including binance labs) and the average private sale(VC) price was 0.02.
Basically before the token was launched to us, the retail public, they (the VC) were buying it for 0.02.
The project launched on binance at 0.6, on launch early investors had already 30x, by the end of the first day it was 0.997 they had already 50x , currently they are still up around 45x their investment.
*Also note ENA still holds a large portion of tokens, 40% , held by the foundation and for ecosystem development, these tokens can be unlocked at any time*
Though many projects have a vesting periods(a period tokens need to be held by investors or the project team) there are still numerous ways, we, the retail investors can get fleeced , these including insider trading, pump and dumps and so much more.
When projects are being funded and then launched at 30-100x ROI for VCs it basically doesnt give retail investors a good entry, we are overpaying regardless, we need the prices to drop drastically to make it worth investing.
The problem is FOMO doesnt see this and thinks because its new it will be the next ETH or SOL ( ETH had a launch market cap of $30 million and SOL $4 million)
ENA Launched with a 33x higher value than ETH launched at, and a 250x higher valuation than SOL launched at, see where the problem is ?, if you dont its simple, ETH and SOL had fair value for retail investors to see upside, newly launched tokens on Binance dont.
These tokens that launch with hundreds of million-billions in market cap or fully diluted market cap are destined to fail for months-years , the project team and VC investors are already up 50x or more and there is NO solid foundation of retail investors who purchased at fair prices to keep the prices stable.
ETH and SOL for example grew because of retail and also large NON VC whales, The whales purchased at the same price you could at the time, not 50x less , over time this belief and price increase grew a solid, stable price range which increased over time based on various factors.
Basically if you buy into any token on launch these days you are paying 50x more than what a VC did a few months before, its a fact.
Until Binance and other exchanges change this the prices will continue to offer no value for launched projects.
Also this is why the tokens you farmed usually drop drastically in the days-weeks after launch, they are massively over priced at the time.
STOP BUYING NEWLY LAUNCHED TOKENS!!
The ONLY way this stops is if WE, the retail investors, STOP pouring money into these over valued VC projects on launch.
Farming is a different story, if you want to hold for months-years then hold, if you think the project might 5x quickly and then you will sell the chances are it wont and it will just fall in price(for some time)
I write and research all my posts (i do use outside info i trust like the chart i posted) , i always stand by what i post but if anyone knows more regarding launched tokens please feel free to comment, i am always happy to learn more.
If you found this helpful please like and follow, it takes a lot of time posting so its always nice to get some postive feedback and support.
Peace