A crypto and macro researcher identified as “Flow” on X (formerly Twitter) provided a detailed review of the profitability of new altcoins listed on Centralized Exchanges (CEX) like Binance. The researcher revealed that leading exchanges like Binance have seen a significant decline in the value and performance of new tokens listed on their platform.
80% of new Altcoins listed on Binance are falling
Reports from Flow suggest that new tokens listed on CEXs are no longer as profitable as they once were. Highlight all tokens listed on Binance Over the past six months, the crypto researcher noted that 80% of these new altcoins have fallen massively, with their value falling below their initial listing price.
Most of these tokens were listed on Binance from November 2023 to May 2024. New tokens like GET IN CHANGEintegrated on November 24, 2023, fell sharply, recording a performance drop of 45.6%.
On the other hand, excluding two altcoins, all tokens listed since the beginning of 2024 have declined. The biggest drop was recorded by a token called PORTALwhich declined by 69.2% from its listing date on February 20, 2024.
Only four cryptocurrencies saw significant gains compared to the 32 tokens newly listed on Binance. Parts same as Ordinals (ORDI) And Dog Hat (WIF) experienced the largest gains, 261.9%i and 117.69%, respectively. At the same time, others like Jito (JTO) and Jupiter (JUP) saw gains above 50%.
Flow revealed that if investors had diversified their portfolios by investing equal amounts in each of Binance’s Newly Listed Tokensthey would have suffered a significant drop of 18% over the last six months.
The macro researcher noted that when tokens are launched at a high fully diluted valuation (FDV), they tend to depreciate, ultimately underperforming. It revealed that most tokens listed on Binance are backed by Tier1 VC and launched at extremely high prices, resulting in substantial profit taking and a significant decrease.
New tokens don’t have real users
According to Flow, new altcoins launched on Binance are no longer profitable investment vehicles, as their high FDV at launch removes most of their upside potential. He indicated that these newly listed altcoins currently serve as exit liquidity for insiders, who mine individual investors‘ limited access to quality investment opportunities.
Additionally, the cryptography researcher disclosed that newly listed crypto projects on Binance do not have real users or a strong community supporting them. Their tendency to launch at a high FDV also leads to unsustainable growth, which discredits the entire crypto industry.
Flow claimed that investing in newly listed tokens was a rigged game, highlighting a comment by economist Alex Kruger, who declared:
Most tokens launched these days are designed to pump and inevitably empty. This happens because founders set very short acquisition timelines, false metrics, and focus on hype rather than user acquisition.
Kruger also revealed that automated trading robots and market makers disadvantage ordinary investors by purchasing large quantities of tokens at introductory prices and selling them at significantly higher prices.
Chart from Tradingview.com
