A recent analysis conducted by Animoca Research brings to light the disheartening reality surrounding cryptocurrency tokens listed on five leading exchanges between January and September. The findings indicate a substantial downturn in token performance, with median losses oscillating between 40% to 70%. The study encompassed a detailed examination of 773 token listings across Binance, Bitget, Bybit, KuCoin, and OKX, providing a comprehensive understanding of market dynamics during this timeframe.
Exchange-Specific Analysis
Diving deeper into individual exchanges, Binance emerged as the most conservative player, with only 44 tokens listed. Similarly, OKX practiced a cautious approach, listing a total of 47 tokens by the end of the third quarter. This restraint is noteworthy when juxtaposed with Bybit and KuCoin, which presented a more moderate turnover of 155 and 188 listings, respectively. Setting a stark contrast, Bitget displayed a highly aggressive strategy, rolling out a considerable 339 tokens in the same period.
Interestingly, despite its ambitious listing strategy, Bitget’s tokens did not perform the worst overall. The exchange recorded an average price return of -46.5%, with a median performance slightly better at -65.9%. Instead, Bybit’s tokens fared the worst, plunging to an average return of -50.2% and a staggering -70.4% as a median return. KuCoin was not far behind, averaging a -48.3% price return and a -66.1% median return.
In a surprising twist, the tokens listed on OKX demonstrated the best resilience in the face of market adversities. While they still encountered negative performance, with an average return of -27.3% and a median return of -40.6%, they provided a slight buffer against the larger losses experienced by their counterparts. Binance’s performance, in comparison, registered an average fall of 27% and a near -50% median return, indicating that even moderate listing activities can lead to significant losses.
Among the exchanges, OKX also boasted the highest proportion of profitable tokens, with about 27.6% of its listings yielding positive returns. However, despite this higher ratio, the profits recorded were among the lowest when measured against average returns, with OKX offering 39.5% and 25.1% for average and median profits, respectively.
Delving into the more profitable listings, Binance stood out with its seven tokens achieving impressive average profits of 108.4%—the highest during the studied period. Bybit and Bitget also surpassed the 100% average profit threshold, registering 103.7% and 101.4%, respectively. KuCoin managed to present itself favorably in terms of average profit, reporting that 25 of its listed tokens experienced an average return of 77.8%.
A final observation from the report highlighted a correlation between token valuation and market cap to fully diluted value (MC/FDV) ratios. Tokens that maintained a balanced ratio post-listing on centralized exchanges were associated with better performance profiles, particularly emphasizing the substantial average returns for Binance listings characterized by an MC/FDV ratio between 0.4 and 0.6.
The volatile nature of cryptocurrency continues to reflect in token performances across exchanges, suggesting that strategies surrounding listings need thorough evaluation and strategic rethinking in order to navigate market uncertainties effectively.