Fresh analytics Presto Research indicates that the fresh tokens listed on Binance in 2025 have experienced a catastrophic drop. A study of 18 cryptocurrencies showed that they lost between 74% and 94% of their initial price.
ZEREBRO (-94.41% in 32 days), SWARMS (-93.12% in 27 days), and ALCH (-91.38% in 27 days) were the most affected tokens. The average time to reach the maximum drop (MDD) varies from 5 to 32 days, indicating a rapid depreciation after listing.
VVV lost value the fastest, depreciating by 78.95% in just 5 days.
On the one hand, this is a reminder to new crypto investors not to buy new tokens immediately after they appear on the exchange. Such collapses may be due to low liquidity, speculative strategies, and lack of trust in projects.
On the other hand, experienced players can use this as a signal to short. The essence of the strategy is that a trader sells cryptocurrency borrowed at the peak of its value. And then he buys the same asset, but at a reduced price, returns the borrowed funds to the creditors, and makes money on the difference.
But in this situation, it is worth remembering that many tokens have a short hype phase, after which a sharp drop begins. If a token does not have an active community or useful application, the probability of a drop increases. Binance Futures allows you to short many new assets with leverage.
Interestingly, as of October 2024 only 5 out of 37 tokens launched on Binance showed profitability. Most have lost between 30% and 80% of their value. The most depreciated token is AEVO, which has lost more than 88% since its debut in March.
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