In the dynamic realm of cryptocurrency, the performance of newly listed tokens is a critical indicator of market trends and exchange strategies. A recent analysis conducted by Animoca Research revealed that tokens introduced across five prominent exchanges, namely Binance, Bitget, Bybit, KuCoin, and OKX, demonstrated severe negative median performances, ranging from 40% to 70%, during the first nine months of the year. This study scrutinized a comprehensive sample of 773 token listings, showcasing varying strategies among different exchanges.
The report underscored distinct approaches among the exchanges regarding their listing strategies. Binance remained conservative, with only 44 token listings, while OKX matched this restraint with 47 tokens. In contrast, Bybit and KuCoin adopted more moderate stances, recording 155 and 188 listings, respectively. Bitget exhibited the most aggressive listing strategy, boasting 339 tokens by the end of September. March and April were identified as peak months for listings, attributed to a temporary rise in favorable market conditions that encouraged these exchanges to introduce new tokens.
Despite Bitget’s bold approach, its tokens did not underperform the market, with an average price return dipping by 46.5% and a median return settling at 65.9%. Bybit’s tokens, however, emerged as the weakest performers in terms of returns, showing average and median declines of 50.2% and 70.4%, respectively. KuCoin’s listings weren’t far behind, recording a negative median return of 66.1%. On the other hand, tokens from OKX demonstrated greater resilience in comparison, suffering average and median losses of 27.3% and 40.6%, respectively.
While Binance’s listings exhibited somewhat better performance metrics—averaging a 27% decline and nearly 50% median loss—it still illustrated the pervasive trend of diminishing returns across the board. Notably, OKX managed to achieve the highest ratio of profitable listings, with 27.6% of its tokens yielding positive returns by September.
Interestingly, though Binance had a small number of positive instances—seven tokens returning an impressive average of 108.4% in profits—its median profit was a respectable 53.5%. Similarly, Bitget and Bybit achieved average profits exceeding 100%, recording 101.4% and 103.7% returns, respectively. KuCoin, while trailing behind, still reported 25 tokens generating an average return of 77.8%, reflecting a competitive outcome despite the overall decline in the market.
The report also suggested a correlation between token valuations and their market cap to fully diluted value (MC/FDV) ratios. Tokens with a satisfactory MC/FDV ratio displayed the highest valuations or returns post-listing on centralized exchanges. This partly explains Binance’s superior average performance, as the majority of its tokens fell within the 0.4 to 0.6 range in MC/FDV ratios.
The analysis by Animoca Research paints a sobering picture of recent token listings across major crypto exchanges. The widespread negative returns suggest not only the volatility of the cryptocurrency market but also that individual exchange strategies significantly influence outcomes. As exchanges continue to adapt to market conditions, understanding these dynamics will be paramount for investors seeking to navigate the treacherous waters of crypto investments.
