New research shows that crypto assets can briefly rise by 41% when they are listed on Binance, the largest crypto exchange according to trading volume.
A new study from the crypto researcher Ren & Heinrich analyzed 26 tokens that were listed on Binance in the past 18 months.
A study found that an average 41% price increase occurred on the first day following a listing. This price increase had a tendency to decline to 24% after the third day.
Binance listings appear to have less of a bullish long-term impact. Ren & Heinrich’s study also notes that assets stayed positive for an average of 22 days before going negative.
Explains Ren & Heinrich,
“The strongest increase in price usually happens on the 1st day after the listing. This depends on the project. It is not clear how big or long this plus will last.
The positive momentum for most tokens or coins is however short-lived. Fast half of all the analyzed cryptocurrency lost their gains after two weeks. Most coins with a negative price performance after two weeks were listed in the bear market.”
Binance announced support for Magic (MAGIC) last month. This token powers Treasure DAO and is intended to create a decentralized gaming console that combines games and non-fungible tokens. The altcoin experienced a sharp rise in value and saw gains of 82% immediately after its listing.
Altcoin trades at $0.476, a drop of nearly half from its December 12th peak of $0.932.
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