Dumb money FOMO-ers Getting Rekt! Are Venture Capital Firms Using B|nance Token Listings for Exit Liquidity?💼🔄

Probably saying what you already knew, but FOMO-ing into new crypto listings are likely to get you rekt! Don't get me wrong; I ❤️ B|nance with all my heart, but the stats aren't looking pretty.

🚨Shocking Stats: Over 80% of tokens listed on B|nance, the world's biggest crypto exchange, have dropped in value in the last six months.

Whata gwan?🧐 Crypto researcher Flow reveals that many new tokens on B|nance are heavily backed by top venture capital firms and come with sky-high valuations.

VC B|nance Listings Now Exit Strategy💸

Flow's research highlights a stark trend: only 5 out of 31 new tokens on B|nance have seen price increases since their launch. These rare success stories include meme coins like ORDI, JUP, WIF, JTO, and MEME. Here's how they fared:

- ORDI: 🚀 +262%

- JTO: 📈 +62%

- JUP: 📊 +58%

- WIF: 🌟 +117%

- MEME: 💹 +8.5%

📉The Downside:

Tokens backed by major VCs have tanked. Check out these numbers:

- NFP (B|nance Labs): 🔻 -63%

- OMNI (Pantera Capital): 📉 -52%

- AEVO (Coinbase, Paradigm, Dragonfly): ⬇️ -68%

Portfolio Pain📉

Flow notes that if you invested equally in each new B|nance listing, you'd be down over 18% in six months.

High Valuations, Low Returns 🏦❌

Many of these projects start with fully diluted valuations (FDVs) over $4.2 billion, sometimes hitting $11 billion, without real users or a strong community.

Contrasting Views🔄

This contrasts sharply with last year's analysis by Ren & Heinrich, which showed a 73% price increase in the first 30 days of B|nance listings. Back then, B|nance's dominance in the crypto market boosted token attention and value.

Expert Take📢

Market experts believe B|nance's liquidity and dominance make it a prime exit route for insiders. Flow sums it up:

“Tokens launching on Binance aren't investment vehicles anymore. They represent exit liquidity for insiders, capitalizing on retail investors who miss out on early investment opportunities.” DYOR Don't lose your money

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