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