The Profitability of New Altcoins on Exchanges
A crypto researcher named Flow has analyzed the performance of new altcoins listed on major exchanges like Binance. His findings suggest that these altcoins are not as profitable as they used to be.
80% of New Altcoins on Binance Are Down
Flow found that 80% of new altcoins listed on Binance in the past six months have lost value. These altcoins were listed between November 2023 and May 2024. Some examples include:
- BLUR: 45.6% decrease
- PORTAL: 69.2% decrease
Only a Few Altcoins Have Gained
Out of the 32 new altcoins listed on Binance, only four have made significant gains:
- Ordinals (ORDI): 261.9%
- Dogwifhat (WIF): 117.69%
- Jito (JTO): Over 50%
- Jupiter (JUP): Over 50%
Diversifying Your Portfolio Won’t Help
If you had invested equal amounts in each of these new altcoins, you would have lost 18% over the past six months.
Why Are New Altcoins Not Profitable?
Flow believes that new altcoins on Binance are not profitable because:
- They launch at high valuations, which limits their potential for growth.
- They are backed by venture capitalists who sell their tokens for profit.
- They have no real users or community support.
- They rely on unsustainable growth driven by hype.
Investing in New Altcoins Is a Rigged Game
Flow argues that investing in new altcoins is a “rigged game” because:
- Founders set unrealistic vesting schedules and fake metrics.
- Automated trading bots and market makers manipulate the market.
Conclusion
Flow’s research suggests that new altcoins on exchanges like Binance are not a good investment. They are often overvalued, lack real value, and are manipulated by insiders.
