With the launch of the Bitcoin spot ETF and the halving narrative, BTC hit a record high of $73,000 in March this year. Investor enthusiasm reached a new wave of climax. Many project parties also took this opportunity to issue their tokens one after another in an attempt to seize the opportunity. market.
However, these new tokens tend to fluctuate violently, and most of them have become tools for VCs and project developers to harvest retail investors.
Only 5 new tokens on Binance have gained in the past 6 months
According to statistics from cryptocurrency researcher Flow yesterday (17th) on the social platform Compared with their prices on the day of listing, only five tokens have experienced growth.
They are: meme currency MEME (8.5%), Bitcoin Inscription ORDI (+261.9%), Solana ecology’s JUP (+58.46%) and JTO (+62.08%), and dog meme currency WIF on Solana (+117.69%):
Looking at all the tokens listed on Binance, the largest centralized exchange, in the past 6 months, we noticed that more than 80% of the tokens have dropped from their listing prices, with the only exceptions being MEME, ORDI, JUP, JTO and WIF.
In this regard, Flow commented:
Project parties launch their tokens on CEX with the highest possible FDV, which provides liquidity for the exit of VCs and insiders. The result: New coins are no longer a great investment.
If you invested the same amount of money to buy new coins every time Binance launched a new coin, your total assets would have shrunk by more than 18%.
Therefore, newly launched tokens on Binance are no longer good investments and all their upside potential has been stripped away. Due to the lack of high-quality early investment opportunities, retail investors are forced to become the liquidity for VCs and project parties to exit.
In many ways, the game is rigged.
Analyst: The market overall lacks upward momentum
In addition, Anndy Lian, a blockchain expert and author of the book "NFT: From Zero to Hero", also expressed her views on this, saying that the current market environment is full of challenges:
Many projects listed on Binance require a long growth cycle. The current encryption market generally lacks momentum, but some Altcoin are still on the upward trend.
Lian continued to add, pointing out that meme coins have become a hot spot for retail investment recently:
Memecoins are different from other Altcoin in that retail interest is the main driving force.
This can be seen from the growth history of ORDI and WIF. In fact, if you look at the trading volume, the top six cryptocurrencies are basically meme coins.
Extended reading: Meme coins are rushing ahead but the copycat season is not coming. Why don’t retail investors and institutions take over each other’s orders?
What is the status of the top ten currencies?
It is worth noting that Bitcoin has hit all-time highs many times, but most of the top ten mainstream coins have not yet reached the level of the 2021 bull market:
- ETH’s rising momentum is weak: Due to the decline of ecological innovation and the vague attitude of the US SEC on Ethereum spot ETFs, Ethereum has not yet exploded on a large scale in this bull market, and its exchange rate with Bitcoin has even dropped to low point;
- BNB new coin mining leads to rising coin prices: BNB is also the governance token of the BSC chain and the platform coin of the Binance exchange. This year, as Binance continues to launch new coin mining projects, its token price continues to rise. , has repeatedly exceeded the $600 mark, but is still a small distance away from its historical highs.
- SOL's comeback: As Solana was greatly affected by the collapse of the FTX exchange, its ecological prosperity and development this year, including the Saga mobile phone and the meme currency craze, inspired its currency price to rise from dozens of dollars last year to the current $170.
- TON has become a dark horse public chain: Backed by Telegram, a huge communication software, TON has been very active this year. Not only has it been linked to Telegram many times, but it has also relied on its ecological development to earn enough attention, and the currency price has also increased compared to Q4 last year. Several times, it is the only project among the top ten tokens to break through all-time highs.
The performance of other public chains such as XRP and AVAX is also unsatisfactory, the ecological development is not very active, and the currency price is even lower than last year's level.
