2018-7-24 22:02 |
Investors can expect an 80% increase in a cryptocurrency’s valuation in the immediate aftermath of being listed on Binance.
Data collected from the last thirteen Binance listings show that since the beginning of June, tokens have experienced an 81% increase in price, on average.
The biggest increase was the identity token for SelfKey (KEY) which following listing at the end of June, went up from $0.0067 to $0.039, a 482% increase. The lowest was Mainframe (MFT), which actually fell by 5% after it was listed on the 5th of July.
So far this month there have been four new Binance listings with the other nine having taken place in June. Projects listed last month, on the whole, saw larger valuations than those that were added onto the exchange in July; although there is still another week before the end of the month.
This follows news on Monday that Holochain (HOT) has been added to Binance. Since the official announcement at just before 09:00 GMT, the value of HOT tokens increased from $0.0006 to $0.0009.
At the time of writing, Holochain’s price is still 50% higher than it was at the beginning of the week.
Over the last quarter, Binance has significantly expanded the number of cryptocurrencies listed on its servers, more than doubling from 162 to 374 coins in the past three months. Listings are normally given trading pairs with bitcoin (BTC), ether (ETH), Tether (USDT) and the exchange’s native token, Binance Coin (BNB).
Based in Hong Kong, Binance is the world’s largest cryptocurrency exchange, with a trading volume of well over $1bn every day. In a blog post published at the beginning of March, Binance’s CEO and founder, Changpeng Zhao, reported that the exchange had made over $200m profits since the start of the year: a 2750% increase on its $7.5m profit it made in the last quarter of 2017.
Listings on popular and trusted exchanges normally lead to strong price increases. Following Coinbase’s surprise announcement that it would list Ethereum Classic (ETC), the cryptocurrrency went from over $12 to just under $18: a $300m increase in the coin’s total value.
Although Binance listings lead to an increase in the coin’s price, most are short-lived. Out of the thirteen added to the exchange in June and July, twelve have reverted back to pre-listing price levels. Although the majority have fallen back a couple of days after the listing announcement, two did so on the same day.
Being added to Binance is a sign of confidence for a project but as the data suggests, it takes more than a listing to sustain a cryptocurrency’s value. By opening up new markets, it gives investors more places to sell, as well as buy, cryptocurrency.
This author is invested in BTC and ETH, which are mentioned in this article.
The post Binance Listings Cause 80% Increase In Coins’ Value appeared first on Crypto Briefing.
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