Over 80% of recent Binance token listings are bleeding red.
Over 80% of newly listed cryptocurrencies are in the red on Binance, the world's largest exchange by trading volume.
More than 80% of listed tokens have fallen in value since listing in the past six months, raising the implications for investors looking for the new cryptocurrency.
Out of the 31 analyzed tokens, only five coins appreciated, which are Memecoin (MEME), Ordi (ORDI), Solana-based Jupiter (JUP) Token, Jito (JTO) and Dogwifhat (WIF), according to anonymous crypto researcher Flo May 17 X post:
The fact that more than 80% of newly launched tokens are in the red indicates a challenging market situation, according to Andy Lean, blockchain expert and author of NFT: From Zero to Hero.
Lian told Cointelegraph that the current state of the cryptocurrency market is described as stable, despite a general lack of momentum with some altcoins still trending. He added:
“Most of the projects listed on Binance may have a longer development period, the development may not be as fast as the previous bull market.”
However, the new tokens on Binance are listed at an average fully diluted value of more than $4.2 billion despite not having a real user base. According to Flow, an anonymous researcher, this can severely limit their ability to flip.
“Most of the time, tokens launched on Binance are not investment vehicles – all of their upside potential is already taken. Instead, they represent exit liquidity for insiders taking advantage of quality early investment opportunities at a retail disadvantage.
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Memecoins: Flavor of the month for retail investors
Despite its lack of venture capital backing, Ordi Token has gained over 261% since its launch, while the controversial memecoin Dogwifhat came in second, with a price increase of over 117%.
Retail interest was a major factor driving the growth of memecoin, which could operate independently of the altcoin market segment, Lian told Cointelegraph.
Many retail investors flock to memecoin as some are long-term hodl. You can see that from the performance of MEME and WIF. In fact, if you look at the transaction volume. Six of the major commercial coins are memes.
Further demonstrating the hype surrounding memecoins, Pepe (PEPE) hit a new high of over $0.000010 on May 13, a day after Keith Gill – the man widely credited with starting the 2021 GameStop short squeeze – returned to social media.
A savvy Pepe trader capitalized on the retail token, turning $3,000 into $46 million in one month when Pepe reached its recent highs.
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