A recent in-depth analysis by Animoca Research has shed light on the disappointing performance of cryptocurrency tokens listed on major exchanges from January to September of this year. The findings indicate that tokens listed on these platforms experienced a median performance decline ranging from 40% to 70%. This stark statistic signals a challenging environment for new token listings, calling into question the strategies employed by different exchanges in approaching this volatile market.
The report examined a total of 773 token listings across five major exchanges: Binance, Bitget, Bybit, KuCoin, and OKX. Each exchange exhibited distinct strategies affecting their overall performance metrics. Binance and OKX maintained a conservative approach, listing 44 and 47 tokens, respectively, indicating a cautious stance perhaps reflective of market conditions. In contrast, Bitget adopted a more aggressive strategy, registering 339 tokens, while Bybit and KuCoin fell somewhere in between with 155 and 188 tokens.
Despite the number of listings, the performance of these tokens revealed a stark reality. Notably, the months of March and April emerged as peaks for such listings, driven by temporary favorable market conditions. Yet, this apparent abundance of listings did not translate into positive returns for investors.
The analysis of price returns yielded sobering results. On average, Bitget’s aggressive offerings were not the worst performers, recording an average price return of negative 46.5%. However, Bybit’s tokens fared the worst, with average and median returns sliding to negative 50.2% and 70.4%, respectively. KuCoin followed closely behind, suffering from a median price return of negative 66.1%.
Interestingly, tokens listed on OKX demonstrated a degree of resilience, recording the least severe losses relative to other exchanges. This exchange reported average and median returns of negative 27.3% and 40.6%, respectively. Binance’s performance mirrored OKX’s but still registered a decline of 27%, with nearly a 50% negative median performance.
Interestingly, while OKX had the most profitable listing ratio with 27.6% of its tokens reflecting positive returns, the actual returns were modest, averaging only 39.5%. On the contrary, Binance’s tokens that turned profitable managed to generate impressive average profits of 108.4%, showcasing the potential of selective and strategic listing practices.
Bitget and Bybit also reported profitable listings exceeding the 100% return threshold, suggesting that despite aggressive strategies, these exchanges could still provide substantial returns for investors. KuCoin’s performance, with an average profit return of 77.8% from 25 tokens, placed them in a commendable position, although still behind their competitors.
The findings from the Animoca Research report reveal a complex image of token performance on major exchanges. Despite a surge in listings in certain months, the overwhelming majority of tokens failed to provide positive returns. It becomes clear that the strategies employed by these exchanges can drastically affect outcomes. The strong performance of tokens with favorable market cap ratios indicates that not all listings are created equal, and strategic approaches to token selection may be pivotal in navigating this turbulent financial landscape. As investors look ahead, understanding these dynamics will be crucial for making informed decisions in the ever-evolving world of cryptocurrency.