A recent study conducted by Animoca Research has brought to light troubling trends in token performance across five leading cryptocurrency exchanges. This analysis, which focuses on tokens listed between January and September, unveiled a stark reality: the median performance of these tokens varies significantly, with losses ranging from 40% to a staggering 70%. The data were derived from a comprehensive review of 773 tokens listed on Binance, Bitget, Bybit, KuCoin, and OKX, highlighting a challenging landscape for crypto investors.
Exchange-Specific Insights
The research points to varying listing strategies among the five exchanges. Binance exhibited a cautious approach with only 44 tokens listed, resulting in a slightly better average performance decline of 27%. OKX adopted a similarly conservative stance with 47 token listings, demonstrating relative resilience with its tokens suffering the least average loss of 27.3%. In contrast, exchanges like Bitget, which aggressively listed 339 tokens, also reflected a more profound underperformance with an average drop of 46.5%, although this was not the worst in absolute terms.
On the other hand, Bybit reported the most severe performance detriments, showcasing an appalling median return of 70.4%, possibly indicating poor selection or mismanagement of listed tokens. KuCoin’s listings exhibited close competition with Bybit in negative returns, reinforcing the notion that aggressive listing strategies do not guarantee success or profitability.
Despite the disheartening figures, there was a notable resilience in some token listings. OKX boasted the highest percentage of profitable tokens at 27.6%, albeit with modest average returns of 39.5 percent. Binance, while listing fewer tokens, had a handful of standout performers; seven of its listed tokens averaged a noteworthy 108.4% profit, significantly bolstering its overall performance narrative. This discrepancy reveals that not all exchanges suffer equally—strategies and selection seem to play pivotal roles in defining outcomes.
Interestingly, Bybit and Bitget also showed instances of exceeding the 100% profit threshold in certain listings, indicating that while performance was poor on average, selective success stories were present. KuCoin’s listings revealed an average return of 77.8% among its more profitable entries, showcasing the stark contrast among different exchanges when evaluating success.
One of the key takeaways from the report is the association between average market cap/fully diluted value ratios (MC/FDV) and performance post-listing. Tokens with an MC/FDV ratio between 0.4 and 0.6 generally fared better, especially on Binance where these metrics correlated with higher average returns. This suggests that market dynamics surrounding token economics are critical factors for both exchanges and investors to consider when making decisions about listings and investments.
The report signifies a compelling narrative on the current state of token listings and their performances across major cryptocurrency exchanges. Investors need to approach the market with a critical eye, considering both historical performance and market cap ratios as they navigate the turbulent waters of cryptocurrency investments. As the market matures, a focus on rigorous analysis will likely yield better decision-making and results for cryptocurrency traders and investors alike.
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