The 98% of new tokens listed on CEX experience a price crash.
The post The 98% of new tokens listed on CEX experience a price crash. appeared on BitcoinEthereumNews.com.
In the world of cryptocurrencies, landing on a centralized exchange (CEX) is often considered a crucial milestone for every new token. The listing on platforms like Binance, Bybit, or Coinbase promises immediate visibility, greater liquidity, and above all a possible increase in the token’s value. However, a new study conducted by CryptoNinjas in collaboration with Storible, questions this enthusiasm. The results show that the listing on a CEX often coincides with the peak of a token’s brilliance, only to be followed by a rapid and consistent decline. FOMO and listing on CEX: why tokens “pump” at the beginning The study examined all the tokens listed in 2024 on six of the most important exchange platforms: Binance, Bybit, OKX, Coinbase, Bithumb, and Upbit. In total, 389 tokens were analyzed. The researchers have collected data related to the price at the time of listing, the current price (updated as of February 4, 2025), and the all-time high reached (ATH). The conclusions are surprising: on average, listing on a CEX generates a 54% increase in the token price in the short term. However, this initial jump is followed by a 52% plunge, with 89% of the tokens ending up losing value compared to the peak recorded during the listing phase. When a project is listed on a prestigious CEX, there is almost always a wave of enthusiasm among investors, often driven by the so-called FOMO (Fear Of Missing Out). This leads to a sudden surge in purchase requests, fueled by the belief that the token is about to take off. According to the study, the 54% average growth in price just after the listing is evidence of high liquidity and speculative expectations. In many cases, however, this peak simply represents a temporary bubble. Another significant data point concerns the all-time highs (ATH). 37%…
Filed under: News - @ March 31, 2025 7:21 pm