New token lists resemble a stock market on steroids. Without the guardrails of traditional finance, prices are swing wildly, labor – and more often breakdown – comfortable days, if not time. The Binance Exchange is often the destination of the selection list for many of these tokens, offering high-rising bets and the opportunity to chase the next market sensation.
However, a closer look at its lists suggest that these instances are statistically bloody. Some analysts argue that the odds are closer to zero, as most new Binance lists follow an unpredictable pump-and-dump cycle, with no significant recovery afterwards.
It raises a key question: is this the nature of the market today, or are the centralized exchanges actively driving unstable speculation?
Recent Binance token lists
There are many new token lists in centralized exchanges following a similar pattern. Skyrocket prices within a few hours of the list, then crash soon after stabilizing the lower level.
Here’s a breakdown of all new Binance lists since the beginning of the year:
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Layer (Defi) – Listed in Feb. 11, dropped by 50% from its high list.
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TST (Memecoin) – Listed on February 9, dropped by 80%.
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Bera (L1 Blockchain) – Listed in Feb. 5, dropped by 38%.
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Anime (Culture Coin) – Listed on January 22, dropped by 74%.
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Trump (Memecoin) – Listed on January 19, dropped by 82%.
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SOLV (DEFI) – Listed on January 17, dropped by 78%.
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Cookie (MarketingFi) – Listed on January 10, dropped by 74%.
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AIXBT (AI) – Listed on January 10, dropped by 67%.
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CGPT (AI) – Listed on January 10, dropped by 68%.
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Bio (Biotech) – Listed on January 3, dropped by 88%.
Bio, Solv, Trump 1-Day Price Price. Source: Marie Poteriaieva, Coingecko
So far, only Beain (Bera) appears to have a chance of reversing, thanks to strong foundations and a dedicated community. The fate of Kaito (An Infofi token listed on Feb. 19) remains unsure. But in each sector – defi, AI, Memecoins, Biotech – the pattern is repeating.
Related: Bybit Exchange was that -hack, more than $ 1.4 billion steth moved
Are Binance lists uniquely bad?
Some analysts argue that all the new tokens depend on the pump and dump. However, recent lists on other exchanges suggest otherwise. For example, the IP (Decentralized IP Management), listed at the gate.io in February. 13, has since climbed nearly 5x. Another example is the Hype, listed in Kucoin on December 7 and perform well.
In some cases, when Binance lists tokens traded to other exchanges, a familiar pump-and-dump pattern also appears. For example, CGPT has been trading since April 2023, yet its Binance list in January for a moment of double price-before crashing under pre-list levels.
Another example is the CAT, which gained 54% on the day of the Binance list on December 17 before 86% collapsed. Velo token, who has been exchanged since 2022, jumped 147% on its Binance list on December 13 before 83% disappeared.
Interestingly, the Velo list at Kraken in February. 18 has no main price effect.
Velo, CGPT, Cat 1-Day Price Charts. Source: Marie Poteriaieva, Coingecko
Why are the CEX token lists pump and dump?
There are many factors – united or in integration – can explain why newly listed tokens fall when trading begins with centralized exchanges.
The most important reason is that they provide a perfect release opportunity for insider and VCs. If there are no vesting restrictions, project supporters can immediately download their holdings, cashing before any real demand to the market has the opportunity to develop. It can be a signal of a lack of long -term interest of the project or any real utility.
Another factor contributing is limited supply and low liquidity. When a token debut with a restrained circulating -moving supply, consumers drive prices quickly. In this case, as many tokens are available – through team unlocking, vesting schedules, or liquidity injections – artificial deficiency is missing, and the price is set to be corrected.
Finally, over-engineered hype and speculation can play a key role. Binance -like exchanges have a large user base, and their brand recognition can create what can be described as a “casino impact,” where entrepreneurs are in a hurry to quickly and explode quickly and rather than sustainable value.
It is also possible, at least in theory, that exchanges can artificially provoke demand, which motivates entrepreneurs to rush and buy at any price. There is no concrete evidence of such manipulation, but Binance has previously faced Accurses of washing tactics and market -making tactics designed to provoke trading volume and volume.
Binance itself, however, emphasized That it has a “solid market tracking framework that identifies and acts against market abuse.”
While reviewing above recent lists is far from complete, it suggests that some list of exchanges are in favor of short-term speculation on sustainable project growth. By prioritizing the amount of trade, the exchange benefits from the hype cycle, but this method is a risk of getting rid of the user’s confidence and drawing regulatory examination.
Crypto centralized exchanges are not the only player walking the hype around the new token launch. Even the Argentine president Javier Milei Recently has been seen doing the same. In addition, some CEXs such as Binance have attempted to ease some of the risks by labeling new lists as “seed” investments and are demanding that users recognize their high risk nature.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
