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Bitcoin

Why the newly listed symbols continue to collapse?

The new code lists are similar to the stock market on doping. Without traditional financing handrails, prices swing violently, manufacturing – often broken – in days, if not hours. Binance Exchange is often the preferred listing destination for many of these symbols, which provides traders high -risk bets and an opportunity to hunt sensation in the next market.

However, a closer look at its legs indicates that these opportunities are statistically dark. Some analysts argue that the possibilities are closer to scratch, as most of the new Binance lists follow a predictable pump and discharge course, with no meaningful recovery after that.

This raises a major question: Is this just the nature of today’s market, or is the central stock exchanges leading with unlimited speculation?

The last Binance icon lists

Many of the new distinctive code lists on the central stock exchanges follow a similar pattern. Prices rise within hours of insertion, then shortly after stability at lower levels.

Below is the collapse of the new Binance menus since the beginning of the year:

  • Layer (Defi) – listed on February 11, decreased by 50 % of its high list.

  • TST (Memecoin) – listed on February 9, decreased 80 %.

  • BRA (L1 Blockchain) – listed on February 5, decreased 38 %.

  • Anime (Culture Currency) – Liser on January 22, decreased 74 %.

  • Trump (Mimikoen) – decreased on January 19, 82 %.

  • SOLV (Defi) – listed on January 17, decreased 78 %.

  • Cookie (Marketingfi) – listed on January 10, decreased 74 %.

  • AIXBT (AI) – listed on January 10, decreased 67 %.

  • CGPT (AI) – listed on January 10, decreased 68 %.

  • BIO (Biotech) – listed on January 3, decreased 88 %.

Biography, SOLV, Trump 1 on the price of the price. Source: Mary Potteria, Coingecko

To date, it seems that berachain (BERA) has a chance to apostasy, thanks to the strong basics and the participating community. Kaito’s fate (Infofi code that was included on February 19) is still certain. But across every sector – Defi, AI, Memecoins, Biotechnology – the pattern is repeated.

Related to: Exchange bybit, more than $ 1.4 billion, moved, Steth

Are the Binance menus uniquely?

Some analysts argue that all new symbols must be pumped and emptied. However, the modern lists of other exchanges indicate otherwise. For example, IP (Decentralization IP Management), listed on Gate.IO on February 13, has risen nearly 5X. Another example is the noise, which was listed on Cocoin on December 7 and a good performance.

In some cases, when Binance lists the distinctive symbols that are already traded on other exchanges, the pump style and the familiar discharge also appear. For example, CGPT has been traded since April 2023, however the Binance menu has doubled in January for a short period of its price-before collapse without prior levels.

Another example is CAT, which gained 54 % on the list of listing on December 17 before the collapse of 86 %. Velo Token, which was circulated since 2022, jumped by 147 % on the Binance menu on December 13 before losing 83 %.

Interestingly, the Velo list on Kaken on February 18 had no significant effect.

VELO, CGPT, Cat 1 Day Brics. Source: Mary Potteria, Coingecko

Why are CEX icon lists pump and unloaded?

You can explain several factors – one or combined – the reason for unloading the newly listed symbols when the trading in the central stock exchanges begins.

The most obvious reason is that it provides an ideal exit opportunity for the informed and VCS. Without restrictions on restrictions, the project supporters can immediately empty their property, and seize any real demand in the market with an opportunity to form. This may be a sign of the project’s lack of long -term benefit or any real benefit.

Another contributing factor is limited initial supply and low liquidity. When for the first time symbolic with a restricted trading offer, the first buyers risely rise. In this case, with more distinctive symbols – whether by opening the team, timelines or liquidity injection – the artificial scarcity disappears, and the price is set on a correction.

Finally, excessive noise in engineering and speculation can play a major role. Exchanges such as Binance contain a huge user base, and the brand recognition can create what can be described as a “casino effect”, where traders rush to expect fast and explosive gains instead of sustainable value.

It is also possible, at least in theory, that an exchange can lead to artificially amplifying the demand, which causes traders to rush and buy at any cost. There is no concrete evidence of this manipulation, but Binance has previously faced allegations of trading tactics and market tactics designed to amplify demand and trading.

However, Binance itself emphasizes that it has “a strong framework for monitoring in the market that determines and takes action against market abuse.”

While the above -mentioned analysis of modern lists is far from comprehensive, it indicates that some of the mechanics of the exchange list prefer short -term speculation over the growth of the sustainable project. By setting the priorities of the trading volume, the exchange benefits from the noise cycle, but this approach risks the erosion of the user confidence and the organizational audit.

Central encryption exchange is not the only player to feed the noise about the launch of the new distinctive symbol. Even Argentine President Javier Millie was recently seen as he did the same. In addition, some CEXS, such as Binance, tries to alleviate some risks by describing new lists as “seed” investments and requires users to recognize their highly dangerous nature.

This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.