Over 80% of Recently Listed Tokens on Binance Depreciate, Experts Warn of ‘Exit Liquidity’ Trend

Over 80% of Recently Listed Tokens on Binance Depreciate, Experts Warn of ‘Exit Liquidity’ Trend

Most newly launched tokens serve as “exit liquidity” for insiders who take advantage of the high initial fully diluted valuation (FDV) and limited retail access.

On Binance, the world’s largest cryptocurrency exchange by trading volume, over 80% of newly listed cryptocurrencies are experiencing a decline.

More than 80% of tokens listed in the past six months have depreciated, posing significant concerns for investors seeking the latest cryptocurrencies.

Among the 31 tokens analyzed, only five have appreciated in value, including the new memecoin (MEME), the Ordi token (ORDI), Solana-based Jupiter (JUP), Jito (JTO), and Dogwifhat (WIF), according to a May 17 post by pseudonymous crypto researcher Flow on X:

The fact that over 80% of newly launched tokens are in the red indicates a challenging market environment, says Anndy Lian, an intergovernmental blockchain expert and author of “NFT: From Zero to Hero.”

Lian told Cointelegraph that the cryptocurrency market is currently described as calm, with some altcoins still trending despite an overall lack of momentum. He added:

“Many projects listed on Binance might have longer growth periods, unlike the instant growth seen in the previous bull market.”

Despite having an average FDV of over $4.2 billion, the new tokens on Binance often lack a real user base, significantly limiting their upside potential. Pseudonymous researcher Flow notes:

“Tokens launching on Binance are often not viable investment vehicles anymore — their upside potential is typically exhausted. Instead, they act as exit liquidity for insiders who exploit retail investors’ lack of access to quality early investment opportunities.”

Explore Cointelegraph’s guide to learn about essential tools and strategies for trading cryptocurrency safely and profitably.

Interestingly, despite lacking venture capitalist (VC) backing, the Ordi token has been the most profitable, surging over 261% since its launch. Controversial memecoin Dogwifhat ranks second, with a price increase of over 117%.

Retail interest has been the primary driver behind memecoin growth, which can operate independently from the broader altcoin market. Lian told Cointelegraph:

“Many retail investors are long-term holders, flocking to memecoins. This trend is evident in the performance of $MEME and $WIF. In fact, if you look at the trading volume, six of the top-trading coins are memes.”

Further highlighting the hype around memecoins, Pepe reached a new all-time high of above $0.000010 on May 13, a day after Keith Gill — known for igniting the 2021 GameStop short squeeze — returned to social media.

One astute Pepe trader capitalized on the retail frenzy, turning $3,000 into $46 million within a month as Pepe surged to its recent all-time high.

FAQs: Binance Recently Listed Tokens