A thorough examination by Animoca Research has unveiled significant insights into the performance of crypto tokens that were listed on various major exchanges between January and September of this year. The report highlights a concerning trend within the crypto market, showing a predominant negative performance, with median returns plummeting between 40% and 70%. Covering listings from well-known platforms such as Binance, Bitget, Bybit, KuCoin, and OKX, the study emphasizes the dynamic and sometimes volatile nature of cryptocurrency trading.
The data reveals distinct strategies adopted by these exchanges in terms of the number of tokens listed. Binance took a more conservative route, with only 44 tokens, while OKX closely matched this approach with 47 listings. In contrast, other exchanges like KuCoin (188 listings) and Bybit (155 listings) exhibited a more moderate appetite for new tokens. However, Bitget stood out with a significantly aggressive approach, amassing a staggering 339 listings by September’s end. Interestingly, despite the high volume of tokens listed on Bitget, it wasn’t the exchange with the worst average performance, highlighting a complex relationship between listing quantity and overall success.
The report draws attention to the token performance metrics across different exchanges. Among them, Bybit exhibited the worst performance figures, with an average return of negative 50.2% and a median return of negative 70.4%. KuCoin’s tokens fared similarly poorly, showcasing a median price return of negative 66.1%. On the brighter side, OKX demonstrated some resilience, with its tokens experiencing a negative median return of 40.6%, the best among all exchanges surveyed. Binance, while not the worst, recorded a decline of 27%, alongside a median performance nearing negative 50%.
A noteworthy takeaway from this analysis is the percentage of tokens that actually yielded positive returns. OKX, despite having the smallest amount of positive gains per token, boasted a listing ratio of 27.6% for profitable tokens. In contrast, Binance led the way in overall profit margins, with its seven positive-return tokens averaging an impressive 108.4% profit—the highest across all exchanges. The average profits reported for both Bitget and Bybit exceeded the 100% threshold, indicating a segment of tokens that managed exceptional performance relative to their peers.
The findings also highlight the impact of market cap and fully diluted value ratios (MC/FDV) on post-listing valuations. It appears that tokens with optimal ratios in the range of 0.4 to 0.6 tended to achieve better average returns, explaining Binance’s relative success despite its small quantity of listings. This relationship suggests that a higher market cap relative to fully diluted value may be a critical factor in determining investor confidence and subsequent performance.
Overall, the report from Animoca Research underscores the complexities of the cryptocurrency trading landscape. As exchanges navigate listing strategies amidst fluctuating market conditions, traders and investors must remain vigilant about the performance metrics of listed tokens. The findings serve as a reminder that while opportunities exist in the form of high-return tokens, the inherent risks in this volatile market require careful analysis and strategic planning. Understanding the nuances of each exchange’s listing strategy and performance metrics can provide deeper insights for investors looking to navigate the unpredictable waters of cryptocurrency trading.
