Binance has long been considered the mother lode of cryptocurrency. Once a token is approved for listing on Binance, its community goes wild.
Catchphrases like 'When will Binance list it?' or 'When will it go live on Binance?' have almost become second nature in the cryptocurrency community. But what truly drives this trend?
Two key factors behind this phenomenon:
1. Liquidity:
As one of the largest centralized exchanges (CEX) in the world, Binance provides enormous liquidity. This enables smooth, large-scale trades, making it easier for projects to gain attention and increase trading activity after listing.
2. Reputation:
Binance's investment arm, Binance Labs, has built a solid reputation, and recognition from Binance Research can immediately elevate a project's credibility.
When Binance backs a project, users often trust it more, thinking, 'If Binance is investing, then this project must be the next big hit.'
“When will Binance list it?” This is no longer just a question, but a catchphrase, a signal for some to invest all their cash into the next moonshot.
Let's look at the story behind the hype—
Price Surge
Community Development
Top Partnerships Established
Listing on major cryptocurrency exchanges (especially Binance) has changed the landscape for many projects before.
Let's explore the performance of Binance-listed tokens in 2024: ⬇️
Only 3 are green. All are memes!
Now let's look at the performance of Binance's launch pool—
As of early 2024, there are 18 projects incubated in Binance's new token pool, which have already gained millions of users, which is a good thing for the exchange (and even for Binance).
How did they perform? Most tokens listed in the first quarter of 2024 had better timing. This led to short-term spikes followed by sharp declines.
There are two reasons for building the same chart:
Bitcoin's dominance is high.
Bitcoin is being sold off.
Let's take a detailed look below👇
Does this hype really make sense?
Does listing on Binance guarantee a price increase, or is this just another venture capital-funded scam, leaving small investors behind while massive profits flow out?
The reality is much more nuanced, and if you still believe in the fairy tale that 'Binance equals profit,' then you need to face the facts.
Let's take a closer look at why listing on Binance matters, the pros and cons of this 'golden ticket,' and whether it's really worth the attention of project teams.
Is it expensive to list on Binance?
BitMEX co-founder Arthur Hayes states that the costs of listing on Binance are quite high.
Projects need to hold $5 million in BNB and pay up to 8% in additional fees.
For projects hoping to list on Binance or similar exchanges, these fees can be a huge burden.
Many projects with high fully diluted valuations (FDV) ultimately left retail investors with significant losses, while venture capitalists profited handsomely, sometimes achieving returns of up to 142.5%.
Investment firm VanEck points out that many investment funds focus too much on short-term gains, which can negatively impact users and projects in the long run.
However, projects that succeed on Binance due to strong community support or technological innovation tend to achieve tremendous success.
Companies that bring real value are adapting to this trend, further validating Binance's role as a powerful catalyst.
The primary listing costs on Binance include:
The listing fee can be as high as 8% of the total token supply.
The project must also purchase and stake $5 million worth of BNB, which will be returned after delisting.
Other exchanges may require deposits of $250,000 to $500,000 in stablecoins or their tokens to list, but Binance's fees can be as high as 16% of the project's token supply plus an additional $5 million in BNB.
So does listing on Binance automatically trigger a price increase?
The answer is not simple. While being listed on Binance is undoubtedly a strong indicator of potential success, several key factors are at play:
1. Market Conditions:
The overall market environment plays a crucial role in whether tokens will rise after listing. Please see the following data:
Among the 37 tokens listed on Binance in 2024, only 5 tokens have seen increases.
$NEIRO has risen 294% since its listing on September 16, with an FDV of approximately $690 million.
However, most projects listed on Binance in 2024 are in a loss state, with over half of the projects losing between 30% to 80%.
The worst performer is $AEVO, which has dropped over 88% since its debut in February.
This data may lead some to lose trust in projects listed on Binance.
If you invested in every project listed on Binance in 2024, your win rate is currently only 13.5%.
This decline is largely due to overall market conditions. Although Bitcoin has risen from $42,000 to nearly $70,000, most altcoins remain in a loss state.
2. Project Quality:
Many investors believe that projects backed by Binance Labs are not just financial instruments—they offer real innovation and have large communities. Of course, Binance Labs rigorously reviews each project to ensure that only the best can enter the exchange.
Tokens with a seed label on Binance typically fall into two categories:
However, Binance is also known for issuing monitoring tags on certain tokens.
This occurs when a project is tagged due to volatility, liquidity issues, or operational risks.
If these issues persist, the project may ultimately get delisted from Binance, which would be catastrophic for the project and its investors.
3. Hype Surrounding Its Narrative:
As we transition from 2023 to 2024, Web3 users are becoming increasingly attracted to emerging narratives such as AI, DePIN, and RWA, all of which are expected to lead the next bull market.
However, despite these exciting stories, many are now stagnating. From the table above, we can see that four out of five successful projects are meme coins.
Meme coins seem to be the magic tickets attracting millions of users. According to CoinMarketCap data, there are 11 meme coins ranked in the top 100 by market cap. Seven of them have a market cap exceeding $1 billion, and I expect at least three more meme coins to join the billion-dollar club in the next bull market.
While being listed on Binance is undoubtedly the dream of many Web3 projects, it means more than just a price increase.
Projects listed on Binance may undergo reviews by top venture capital firms, but that doesn't guarantee sustained growth. We have seen that most projects are currently underperforming, especially since the start of this cycle.
If your investment strategy focuses solely on projects listed on Binance and expects them to succeed, you need to reconsider.
Therefore, please invest wisely and always let your mind, not your heart, guide your investment decisions.