The study by CryptoNinjas and Storible unveils the elusive nature of token listings on centralized exchanges, revealing significant price fluctuations and their causes.
Study Overview
The analysis covers 389 tokens listed on six major CEXs during 2024. It examines prices at the time of listing, current prices, and max highs for each token. Findings show an average 54% pump at listing, with 37% reaching ATH immediately. Subsequently, 89% experience a drop, averaging 52%, highlighting the market's speculative nature.
Exchange-Specific Analysis
On Binance, tokens show an 87% average increase at listing, dropping by 70% later. Bybit sees a 61% average pump, with 60% reaching ATH, followed by a 63% decline. Coinbase offers more tempered fluctuations: a 41% increase and a 28% decrease.
Study Conclusions
The study highlights the volatility of crypto markets and the speculative bubbles formed around token listings. CEX listing often appears more about market psychology than fundamental value. For investors, approaching listings with caution and strategic thinking is crucial.
Visibility and liquidity offered by CEX listings are often fleeting. The study urges projects to focus on long-term sustainability and investors on informed approaches, avoiding speculation aimed at short-term gains.
