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Tokens listed on Binance used to fuel long-term bullish rallies for various tokens back in 2017 and even 2021. However, things have changed drastically after the composition of early investors shifted toward VCs and various funds that use retail investors as exit liquidity.
Everyone is talking about the VC + CEX cartel, where teams are pushed to launch at the highest possible fully diluted valuation (FDV) on tier-1 centralized exchanges to provide exit liquidity for VCs and insiders. The result: New coins are not great investments anymore. But how real is this claim? Numbers suggest it is.
Researcher Flow, known on X as @tradetheflow_, analyzed the performance of 31 tokens listed on Binance over the past six months. Only five tokens have increased in price compared to their listing time: ORDI +261.9%, JTO +62%, JUP +58%, WIF +117%. The biggest decliners include NFP -62%, PORTAL -69%, AEVO -68%, SAGA -63%, DYM -55%, AXL -55%, BOME -55%, W -58%. The average FDV when Binance listed these tokens was as high as $4.2 billion.
Alex DovbnyaMost of the new Binance listings are tokens backed by tier-1 VCs and launch at inflated valuations. The average FDV on Binance listing dates is over $4.2 billion, with some even reaching a staggering $11 billion. Often, these projects have no real user base or strong community support. If you held a portfolio investing an equal amount in each new Binance listing, you would be down over 18% in the past six months.
More often than not, tokens launching on Binance no longer serve as solid investment vehicles — their upside potential is already exhausted. Instead, they represent exit liquidity for insiders who capitalize on retail investors' lack of access to quality early investment opportunities.
Launching at high FDVs just results in token price bleed and zero mindshare, ultimately leading to the token's collapse.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov