Cryptocurrencies

More than 80% of newly listed cryptocurrencies are in the red zone on

More than 80% of newly listed cryptocurrencies are in the red on Binance, the world’s largest cryptocurrency exchange.

More than 80% of the coins listed have fallen in value in the past six months since their listing, raising concerns among investors looking for the latest cryptocurrencies.

Of the 31 tokens analyzed, only five were valued, including the new memecoin (MEME), Ordi token (ORDI), Solana-based Jupiter (JUP), and Jito (JTO), as well as Dogwifhat (WIF), according to To X’s post published by cryptocurrency researcher Flow on May 17:

Binance tokens listed over the past six months. source: flow

The fact that more than 80% of newly launched tokens are in the red indicates a challenging market environment, according to Andy Lien, an international government blockchain expert and author of NFT: From Zero to Hero.

Lian told Cointelegraph that the current state of the cryptocurrency market has been described as calm, with some altcoins continuing to trend despite a general lack of momentum overall. he added:

Many projects listed on Binance may have a longer period of growth, and growth may not be as immediate as previous bull markets…”

However, the new tokens on Binance are listed at an average fully diluted valuation (FDV) of over $4.2 billion despite having no real user base. This could significantly limit their upside potential, according to the researcher who goes by the pseudonym Flo:

“For the most part, tokens launched on Binance are not investment vehicles anymore – all of their upside potential has already been removed. Instead, they represent a liquidity exit for insiders who benefit from the retail sector’s inability to access good early investment opportunities.

Explore Cointelegraph’s guide to discover essential tools and strategies for safe and profitable cryptocurrency trading.

Related: Dogwifhat on its way to $10? WIF is now the third largest memecoin with whales holding on to it

Memecoins: Flavor of the Month for Retail Investors

Despite the lack of venture capital (VC) backing, the Ordi token was the most profitable, rising over 261% since its launch, while the controversial memecoin Dogwifhat took second place, with a price increase of over 117%. .

Retail interest has been the main factor driving the growth of memecoins, which can operate independently of the altcoin market segment, Lien told Cointelegraph:

“Since some of them are long-term HODLs, many retail investors have rushed into memecoin. You can see this by the performance of $MEME and $WIF. In fact, if you look at the trading volume. 6 of the best currencies are memes.”

Further showcasing the hype around memcoins, Pepe hit a new all-time high of over $0.000010 on May 13, one day after Keith Gill – the man widely credited with sparking the 2021 GameStop short squeeze – returned to social media. .

Taking advantage of the retail hype, one savvy Pepe trader turned $3,000 into $46 million within a month, while Pepe was climbing to an all-time high.

Magazine: “Legal deals on wheels” for a UK cannabis millionaire via cryptocurrencies

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