The cryptocurrency market has shown significant volatility, and a recent in-depth analysis from Animoca Research sheds light on the performance of tokens listed on major exchanges from January to September. Covering over 770 token listings across five leading platforms — Binance, Bitget, Bybit, KuCoin, and OKX — the report reveals a concerning trend of negative performance, with median returns ranging from 40% to 70%. Such staggering figures underscore the challenges faced by new tokens in securing investor confidence in a fluctuating market.
The report identifies different strategies adopted by the exchanges with their listing activities. Binance was cautious, only listing 44 tokens, while OKX followed suit with 47. Bybit and KuCoin exhibited moderate enthusiasm with 155 and 188 listings, respectively. Bitget, on the other hand, was notably aggressive, listing a significant 339 tokens. This variance in listing strategy might account for differing performance outcomes, reflecting the risk appetite and marketing tactics employed by each exchange.
Interestingly, the peak months of March and April drove notable listing activity, suggesting that favorable market conditions can prompt heightened interest in new token offerings. However, the subsequent performance of these listings raises pressing questions about the sustainability of such optimism in subsequent months.
Within the report, performance metrics reveal that while Bitget demonstrated an aggressive listing strategy, it did not yield the worst outcomes; average returns landed at a negative 46.5%, with a median return of 65.9%. Conversely, Bybit’s listings faced the harshest realities, with average and median returns plummeting to negative 50.2% and 70.4%, respectively. KuCoin’s negative median return of 66.1% further illustrated the challenging landscape.
On a somewhat brighter note, OKX emerged as the most resilient platform among those surveyed, posting negative figures that still indicated a measure of profitability compared to peers. Binance, despite its conservative approach, managed slightly better numbers than OKX, showcasing a median performance near negative 50%.
The findings deeper within the report reveal a vital correlation between the market cap/fully diluted value (MC/FDV) ratio of tokens and their post-listing performance. Tokens that maintained an optimal MC/FDV ratio of 0.4 to 0.6 reportedly went on to achieve the highest valuations, contributing to Binance’s superior average returns.
Interestingly, although only 27.6% of OKX’s listings returned positive movements, they did witness the least detrimental implications on average and median profits. Meanwhile, Binance’s select group of seven successful listings achieved impressive average profits of 108.4%, showcasing the potential rewards of careful token selection.
Concluding Thoughts
The analysis of token listings between January and September reveals a high level of market instability and the precarious position of many new offerings. While aggressive listing strategies may appear attractive, they do not guarantee success. Diversity in exchange performance, from Binance’s measured approach to Bitget’s exuberance, delineates a complex landscape that investors must navigate with caution. As the market matures, understanding these dynamics will be crucial for future investors looking to capitalize on promising listings amidst great uncertainty.