A comprehensive analysis conducted by Animoca Research sheds light on the performance of crypto tokens listed on five prominent exchanges from January to September. The findings reveal a concerning trend: a negative median performance ranging between 40% to 70% across 773 token listings from Binance, Bitget, Bybit, KuCoin, and OKX. This data invites scrutiny on how market conditions and strategic choices by these exchanges can influence token performance in the volatile cryptocurrency landscape.
The exchanges adopted diverse listing strategies, with Binance leading the way with a relatively cautious approach by only listing 44 tokens. OKX followed suit with 47 listings, indicating a similar level of restraint. In contrast, Bybit and KuCoin exhibited moderate ambition, listing 155 and 188 tokens, respectively, while Bitget pursued a bold strategy by listing 339 tokens in the same period. This diversity in listing behavior raises questions about how aggressive and conservative approaches can impact not only the exchanges’ reputations but also the market performance of the tokens they list.
Notably, the analysis identified March and April as peak months for token listings, attributed to favorable market conditions that attracted new projects seeking visibility. Although Bitget’s aggressive listing strategy did not yield the worst performance, it showcased an average price return of negative 46.5%, alongside a median return of negative 65.9%. This result emphasizes that a high volume of listings does not guarantee success and could potentially dilute the overall quality and investor confidence in the tokens.
Bybit’s listings emerged as the most disappointing, with an average return of negative 50.2% and a median return of negative 70.4%. KuCoin followed With a negative median return of 66.1%, reflecting the challenges faced by newer tokens in sustaining value post-listing. Conversely, OKX exhibited relative resilience, offering average and median returns of negative 27.3% and 40.6%, respectively. This suggests that even amid downturns, some exchanges manage to curate a more stable portfolio of listed tokens, lending investors a semblance of hope.
Despite the overarching trend of losses, the analysis revealed that token listings on Binance yielded the most significant gains for successful investments, with seven tokens averaging returns of 108.4%. Furthermore, Binance achieved the second-largest median gain of 53.5%. Such results illuminate the importance of strategic asset selection in navigating bear markets. While OKX maintained the highest ratio of profitable listings at 27.6%, the resulting average and median profits were smaller than those of Binance, highlighting how different strategies yield varying results.
Intriguingly, the analysis points toward the market cap/fully diluted value (MC/FDV) ratio as a crucial determinant in predicting post-listing performance on centralized exchanges. Tokens with an optimal MC/FDV ratio between 0.4 and 0.6 succeeded in garnering better valuations, partially explaining Binance’s superior average gains. This trend illustrates the need for investors to delve beyond headline figures and consider foundational metrics that impact asset viability and market traction.
The Animoca Research findings offer a critical lens on the performance of crypto tokens across major exchanges. By contrasting aggressive and conservative listing strategies and examining profitability amid losses, the report emphasizes the intricate dynamics influencing investor outcomes. In an ever-evolving cryptocurrency market, it remains imperative for investors to acknowledge varying exchanges’ methodologies and the importance of underlying valuation metrics. This nuanced understanding will be key to navigating future investments in the crypto arena.