The Influence of Binance Token Listings on Venture Capital Firms
Sunday, 19 May 2024, 14:53
Researcher: Binance Token Listing Now Serves as Exit Liquidity for Venture Capital Firms
Binance-listed tokens backed by top-tier venture capital firms tend to perform poorly, while a few memecoins and projects without major VC backing saw significant gains.
- Only 5 out of 31 selected tokens on Binance have seen price increases since their launch.
- ORDI, JUP, WIF, JTO, and MEME surged individually by over 50% in the past six months.
- Tokens supported by top VCs such as Binance Labs, Pantera Capital, and others have experienced significant declines.
- Many new projects launch at high fully diluted values (FDVs) without a strong community presence.
Conclusions:
Researcher findings: Tokens without major VC backing outperform those supported by top VCs on Binance. This shift raises questions about the role and impact of venture capital in token performance.
Market dynamics: High FDVs and lack of real user engagement challenge the traditional success metrics of new token listings.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.