On Binance, the world’s largest cryptocurrency exchange by trading volume, more than 80% of newly listed cryptocurrencies are in deficit.
Over the past six months, more than 80% of listed tokens have lost value since listing, creating a worrying impact for investors looking for the latest cryptocurrencies.
According to a May report from pseudonymous cryptocurrency researcher Flow, five of the 31 tokens analyzed included Memecoin (MEME), Ordi (ORDI), the Solana-based Jupiter (JUP) token, Jito (JTO), and Dogwifhat (WIF). Only coins were evaluated. 17
According to intergovernmental blockchain expert and author Anndy Lian, the fact that more than 80% of newly launched tokens are in the red indicates a challenging market environment. NFTs: From Zero to Hero.
Lian told Cointelegraph that the current state of the cryptocurrency market describes certain altcoins as still trending despite an overall lack of momentum. He added:
“Many of the projects listed on Binance may have longer growth periods, and growth may not be as immediate as in previous bull markets.”
However, Binance’s new token was listed with an average fully diluted value of over $4.2 billion despite having no real user base. According to anonymous researcher Flow, this could significantly limit upside potential.
“Tokens launched on Binance are no longer an investment vehicle. All upside potential is already gone. Instead, it represents exit liquidity for insiders taking advantage of retail businesses that lack access to quality early-stage investment opportunities.”
Explore Cointelegraph’s guide to discover the essential tools and strategies to trade cryptocurrencies safely and profitably.
Related: Is Dogwifehat on its way to $10? WIF is now the third largest memecoin held tightly by whales.
Memecoins: Flavor of the Month for Retail Investors
Despite having no venture capital backing, the Ordi token was the most profitable, rising over 261% since launch, while controversial memecoin Dogwifhat came in second place with a price increase of over 117%.
According to Lian, who told Cointelegraph: Retail interest has been a key factor driving the growth of memecoin, which can operate independently of the altcoin market segment.
“A lot of retail investors have flocked to memecoin because some of them are long-term holders. This can be seen by looking at the performance of MEME and WIF. If you actually look at the trading volume. 6 of the best trading coins are memes.”
Further demonstrating the hype around memecoins, Pepe (PEPE) hit a new all-time high above $0.000010 on May 13, a day after Keith Gill, widely credited with starting the 2021 GameStop short squeeze, returned to social media. .
Capitalizing on the retail hype, one savvy Pepe trader turned $3,000 into $46 million in one month while Pepe recently rose to all-time highs.
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