In a recent analysis, Binance Alpha, Binance's innovative Web3 Wallet feature, has completed the listing of 29 new Tokens in the past week. However, more than 40% of them have experienced a sharp decline in value, leading investors to question whether the Binance Alpha projects are truly worth pursuing.
According to information shared on X by @sankin_eth, out of the 29 Tokens launched on Binance Alpha, 17 Tokens have generated profits for investors, while 12 Tokens, accounting for 41% of the total, have recorded a decline in Fully Diluted Value (FDV) compared to the initial listing price.
The market capitalization of these Tokens has undergone significant changes in a short period, with the highest value close to one billion dollars and the lowest just over ten million dollars. Binance Smart Chain (BSC) accounted for 41.4% of the listed assets.
When classifying the Tokens by theme or "narrative", Tokens related to artificial intelligence (AI), animal-themed memes, and DeFi stood out the most.
While some Tokens experienced strong growth after being announced, many others recorded significant declines. BOB Token had the largest drop, losing 23.2% of its value within 24 hours, while BANANA declined by 14.4%. PSTAKE also saw a decline, though not as severe, with a 7% drop in the same period.
Meanwhile, the Solana Fartcoin (FARTCOIN) meme Token, released in the second round of the project, recorded a 16% decline in FDV. The DeFi Tokens SYRUP and SD, launched in the same round, also suffered the same fate, with declines of 15% and 21%, respectively.
Furthermore, Tokens with smaller market capitalizations have shown significant volatility, with Tokens like Shoggoth, FROG, BOB, TERMINUS, and GNON leading the way in terms of growth, each increasing by more than 100%. In contrast, APX and GRIFFAIN recorded the largest declines of 28% and 25%, respectively.
According to @sankin_eth, Binance Alpha has not yet created a significant growth effect, suggesting that the true potential can only be realized when these Tokens are listed on Binance's main spot market. The expert recommends that Binance Alpha consider listing Tokens with higher FDV, ideally over one billion dollars, to create greater growth opportunities for secondary market investors.
Additionally, they also emphasized the need to diversify the currencies and implement a delist mechanism for underperforming Tokens, similar to the strategy Binance is applying to assets on its main exchange, to maintain a quality asset portfolio.
Binance US, Binance's US subsidiary, is preparing to restore US dollar services, with the goal of launching by early 2025. This announcement was shared by Interim CEO Norman Reed in a recent blog post. He stated that the exchange is closer than ever to bringing back USD services, aiming to complete this milestone by the beginning of 2025.
"We are getting very close to re-deploying USD services and are focused on achieving this milestone by early 2025," Reed shared, emphasizing Binance's commitment to providing low fees and high rewards to strengthen its position in the competitive crypto market.
This announcement comes after Binance CEO Richard Teng recently shared that discussions about restoring services in the United States are still too early.
Binance US was launched in 2019, providing managed crypto trading services for users in the United States. However, the exchange's operations faced a significant challenge in June 2023 when the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance US, alleging that the company failed to properly register as a securities exchange and violated multiple legal regulations.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
Join Telegram: https://t.me/tapchibitcoinvn
Twitter (X): https://twitter.com/tapchibtc_io
Tiktok: https://www.tiktok.com/@tapchibitcoin
Itadori
According to Cryptopolitan
