For many in the crypto world, securing a Centralized Exchange (CEX) listing is a milestone, a sign that a token has “made it.”
Yet, recent findings from a CryptoNinjas and Storible report suggest that these listings often trigger extreme price swings, leaving investors grappling with sharp losses.
Analyzing 389 tokens listed across six major CEX platforms, which include Binance, Bybit, OKX, Coinbase, Bithumb, and Upbit. While the initial excitement pushes prices up, the inevitable crash suggests that these surges may be more about speculation than real market value.
The Boom Before the Bust
The data reveals a consistent pattern. On average, tokens experience a 54% price surge upon listing, with 37% reaching their all-time high (ATH) immediately. However, the euphoria is short-lived, 89% of tokens see a dramatic decline post-listing, with prices dropping an average of 52% from their peak.
The reason is a frenzy driven by fear of missing out (FOMO). Investors, eager to catch an early profit, flood the market with liquidity. Binance, the world’s largest exchange, exemplifies this trend, with newly listed tokens seeing an 87% surge—only to experience a sharp 70% decline soon after.
Exchange-Specific Trends
Different platforms exhibit varying degrees of volatility, but the pattern remains the same:
Binance: Tokens jump by 87% but later tumble by 70%. The platform’s vast user base of about 258 million across more than 100 countries fuels both rapid gains and sharp corrections.
Bybit: Tokens climb 61% on average, with 60% reaching ATH upon listing, yet they later drop 63%.
Coinbase: The fluctuations are less extreme, with a 41% average surge and a more moderate 28% decline, hinting at a possibly more cautious investor
No Comments