Binance, a major player in cryptocurrency exchanges by trading volume, has listed 30 tokens since the start of 2024. Despite this, many of these new projects have underperformed.
Most of the tokens introduced were launched at high valuations, often with backing from prominent venture capital firms. According to Coin98 Analytics, only Jupiter (JUP) has seen positive performance among these 30 tokens. The remaining tokens have experienced significant declines, with many losing between 44% and 90% of their value. This trend is evident among tokens supported by Binance Labs as well as those backed by leading venture capitalists such as a16z, Paradigm, Coinbase Ventures, Galaxy, and Pantera Capital.
Vinay, a Web3 developer, suggests that evaluating individual token performance in isolation might be misleading. He proposes comparing these Binance-listed tokens with Ethereum (ETH) and Optimism (OP). His analysis shows that nine of the 30 Binance-listed projects have performed positively, with only four remaining stable. It appears that the poorest performers were listed in April, a period when market conditions may have changed.
The data points to Binance’s role as a significant platform for launching new projects, possibly due to its high liquidity and dominance. This attracts insiders looking to exit their investments. According to Flow, holding a diversified portfolio of Binance-listed tokens would have resulted in an average loss of over 18% in the past six months.
Research by Haseeb Qureshi, Managing Partner at Dragonfly, highlights that some tokens, particularly those listed in April, may have suffered due to the realization among retail investors that venture capitalists controlled a substantial portion of these assets. This, coupled with potentially limited token supply, might have contributed to the decline in value.
For accurate and up-to-date information, readers are encouraged to verify facts independently and consult with professionals before making investment decisions.
