In the world of cryptocurrency, token performance can significantly shift based on listing activities across major exchanges. A recent analysis by Animoca Research painted a stark picture of the market from January to September, where the median performance of tokens listed during this timeframe on five notable exchanges—Binance, Bitget, Bybit, KuCoin, and OKX—exhibited disappointing trends. The research encompassed 773 different token listings, revealing an average performance decline between 40% and 70%, prompting investors and analysts to reconsider the market strategies employed by these exchanges.
Different exchanges showed varying degrees of listing activity during the analyzed period. Binance and OKX took a more measured approach, listing 44 and 47 tokens respectively. In contrast, Bybit and KuCoin demonstrated moderate enthusiasm with 155 and 188 listings, while Bitget’s aggressive stance stood out with a staggering 339 tokens. Despite the ambitious model adopted by Bitget, its tokens did not emerge as the worst performers; the average price return was recorded at a negative 46.5%. Meanwhile, Bybit listings suffered the harshest average and median returns, plummeting to negative 50.2% and 70.4% respectively, highlighting the potential risks of high-volume listings without clear investor confidence.
The report underscored that the months of March and April were pivotal for listing activity, driven by better market conditions. However, even during this peak period, the results were lackluster. Notably, OKX’s tokens showed better resilience, with average and median price return losses of negative 27.3% and 40.6%. In comparison, Binance fared slightly better, experiencing an average decline of 27% with a median drop nearing 50%. This shows that while both Binance and OKX adopted conservative listing strategies, the outcomes reflect a broader trend of losses in the sector.
When examining profitable listings, it was evident that positive returns were sparse. OKX had the highest percentage of tokens yielding profits—around 27.6%—although these returns were modest at best. Binance led in terms of profit margins among its limited listings, with positive returns averaging 108.4%, while Bitget and Bybit also surpassed the 100% profit mark. This data suggests a correlation between listing strategy conservativeness and performance effectiveness, as evidenced by the substantial disparity in the average return values across the exchanges.
An interesting finding from the analysis was the relationship between the market cap to fully diluted value (MC/FDV) ratio. Tokens with a healthy MC/FDV ratio—especially those listed between 0.4 and 0.6—tended to showcase stronger performance following their listings on centralized exchanges. This critical insight into token valuation dynamics illustrates why Binance’s listings garnered better average returns despite their smaller overall volume, emphasizing the necessity for strategic valuation assessments when considering new token investments.
The findings from Animoca Research serve as a cautionary tale for investors navigating the volatile cryptocurrency market. With several tokens showing significant depreciation, there is an urgent need for due diligence and market analysis before committing capital. By understanding the nuances of listing strategies and market dynamics, investors can more effectively mitigate risks and optimize their investment approaches in an environment characterized by uncertainty.
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