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

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

144
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:

Over 80% Of Recently Listed Tokens On Binance Depreciate, Experts Warn Of 'Exit Liquidity' Trend

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

Where can I find information on recently listed tokens on Binance?

You can find information on recently listed tokens on Binance in a few places:The “New Cryptocurrency” section on the Binance website:
https://www.binance.com/support/announcement/new-cryptocurrency-listing?c=48&navId=48

The “Recently Added” section on the Binance altcoins page: https://www.binance.com/en/altcoins/trending

The Binance Announcement page (look for announcements about new coin listings): https://www.binance.com/en/support/announcement

How often does Binance list new tokens?

Binance lists new tokens regularly, but there is no set schedule.

Should I invest in a recently listed token on Binance?

Investing in any cryptocurrency, including recently listed tokens on Binance, involves a high degree of risk. You should carefully research any token before investing and never invest more than you can afford to lose.

Over 80% Of Recently Listed Tokens On Binance Depreciate, Experts Warn Of 'Exit Liquidity' Trend

Leave a comment

Leave a Reply

Related Articles

Ether ETF Market Booms: Fidelity Tops Inflows with $115.5 Million on Monday

Ether ETF Market Booms: Fidelity Tops Inflows with $115.5 Million on Monday

BTC Hits Record High: The Price Nears $90,000 After Breaking $85K with 30% Weekly Surge

BTC Hits Record High: The Price Nears $90,000 After Breaking $85K with...

Ethereum Scalability: Researcher Justin Drake to Present New Consensus Proposal

Ethereum Scalability: Researcher Justin Drake to Present New Consensus Proposal

Dogecoin Climbs 30% in 24 Hours as Trump-Led Bull Run Sparks Memecoin Frenzy

Dogecoin Climbs 30% in 24 Hours as Trump-Led Bull Run Sparks Memecoin...