Binance struggles as nearly every token listed in 2024 is in the red, with the airdrop model contributing to sharp declines in value.
In a tough year for Binance, the cryptocurrency exchange has seen nearly all its 2024 token listings suffer significant losses. According to Coin98 Analytics, 29 out of 30 tokens listed this year are now in the red, with the airdrop model for token distributions contributing to the widespread declines.
Key Points:
Token Performance Overview:
Of the 30 tokens listed by Binance in 2024, only Jupiter’s native token (JUP) has seen gains, rising 21.2% since its listing.
The remaining tokens are down, with the majority experiencing losses exceeding 50%.
Jupiter’s Success:
Jupiter, a Solana-based decentralized exchange, stands out with a fully diluted value (FDV) of approximately $8 billion and over $610 million in total value locked (TVL).
Airdrop Distribution Issues:
The airdrop model, used for distributing tokens, is seen as part of the problem, often leading to severe value declines post-listing.
The methods for determining airdrop allocations are often opaque, causing frustration among users.
Market Impact:
The worst-performing token, Aevo’s native token (AEVO), is down more than 90% since its listing in March.
The broader cryptocurrency market crash on August 5 vaporized around $510 billion in market capitalization.
Expert Opinion:
Jonathan Joseph, co-founder of SmartFunds, highlighted the disconnect between airdrop points and token allocations, contributing to user dissatisfaction.
The challenging performance of Binance's 2024 token listings underscores the issues associated with the airdrop distribution model and the volatility of the crypto market. As the industry continues to evolve, alternative distribution methods may need to be explored to mitigate such widespread losses and restore investor confidence.
Source: Cointelegraph
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