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Are Newly Listed Altcoins on Exchanges like Binance Worth Investing In? Leading Crypto Researcher Reveals the Truth

A reputable crypto and macro researcher known as “Flow” on X (formerly Twitter) has conducted an extensive analysis on the profitability of new altcoins listed on Centralized Exchanges (CEX) like Binance. The researcher has revealed a significant decrease in both value and performance of these new tokens listed on Binance. Approximately 80% of the new altcoins listed on Binance in the past six months have experienced a sharp decline, with their value dropping below their initial listing price.

Most of these tokens were added to Binance between November 2023 and May 2024. For example, the token BLUR, integrated on November 24, 2023, saw a substantial 45.6% decrease in performance. Excluding two altcoins, all tokens listed since the beginning of 2024 have shown a decline, with the most significant drop recorded by PORTAL, which plummeted by 69.2% since its listing date on February 20, 2024.

Out of the 32 newly listed tokens on Binance, only four cryptocurrencies registered notable gains. Meme coins like Ordinals (ORDI) and Dogwifhat (WIF) recorded the largest gains, at 261.9% and 117.69%, respectively. Other tokens like Jito (JTO) and Jupiter (JUP) also saw gains above 50%.

According to Flow, diversifying investments equally across all of Binance’s newly listed tokens would have resulted in a significant 18% decline over the past six months. The researcher pointed out that tokens launching at high Fully Diluted Valuation (FDV) tend to depreciate and underperform, particularly those backed by Tier1 VC at elevated prices.

Flow also highlighted the lack of real users and community backing for newly listed tokens on Binance, emphasizing their high FDV at launch which hinders their upside potential. The researcher mentioned that these newly listed tokens primarily serve as exit liquidity for insiders, exploiting the limited access to quality investment opportunities for retail investors.

Additionally, Flow disclosed that these newly listed crypto projects lack real users and sustainable growth, discrediting the broader crypto industry. The researcher also quoted economist Alex Kruger, who mentioned that most tokens are engineered for pump-and-dump schemes due to short vesting schedules, fake metrics, and hype-driven strategies rather than user acquisition.

Overall, the crypto market for altcoins is facing challenges, as indicated by the struggles with bears in the market. For more information, refer to the chart from Tradingview.com.

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