Binance’s New Token Listings Face Losses Despite Favorable Market in 2024 

• Binance’s newly listed tokens have struggled to maintain their value, with some losing nearly 90% over recent months. 
• Despite Binance’s rigorous vetting process, many of its new token listings underperformed in 2024, challenging investor expectations. 
• Meme tokens like Pepe have outperformed VC-backed tokens, demonstrating the evolving dynamics of the cryptocurrency market. 

Binance’s latest round of token listings has experienced significant losses, despite favorable market conditions in 2024. The exchange, known for its rigorous vetting process and strategic listing tiers, has seen several new projects underperform, raising questions about the effectiveness of its market risk assessments. The newly listed tokens, including Wormhole (W) and AEVO, have suffered losses of nearly 90%, highlighting a challenging year for these assets. 

When it comes to trading, Binance still favors established cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Solana (SOL). These top-tier assets control the platform, taking up about 80% of its market volumes by mostly being exchanged with Tether (USDT). Conversely, smaller coins and tokens represent less than a fifth of the volume traded on average – which doesn’t provide enough liquidity for profitable trades.

Despite expectations, Binance’s introduction of various venture capital-backed tokens did not meet the anticipated success. Tokens from prominent narratives in 2024, including artificial intelligence (AI), decentralized finance (DeFi), the Toncoin ecosystem, and other Web3 projects, failed to make a significant impact. These tokens faced deep losses, primarily driven by token unlocks and general market selling, demonstrating the volatile nature of the market.

Binance also faced challenges with tokens that were introduced post-airdrop, such as Banana Gun (BANANA). These tokens experienced sharp declines after initial surges, as early holders sought liquidity opportunities. BANANA peaked above $80 shortly after its Binance debut, only to slide to $35, with increased trading volumes exacerbating the situation. Binance accounted for nearly 30% of BANANAs trading activity, reflecting the exchange’s significant role in the token’s volatile journey.

However, there were notable exceptions. Meme tokens like Pepe (PEPE) managed to outperform, gaining around 800% year-to-date. Despite receiving a cautionary listing warning, Pepe’s success highlights the shifting focus within the cryptocurrency community, where memes are beginning to eclipse traditional utility projects. Memes have replaced utility projects in terms of net gains, underscoring the changing principles of forming crypto communities.