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Why 98% of New Tokens Listed on CEX Experience a Price Crash? | by Dr. Ahmed Hatem | The Capital | Mar, 2025

April 21, 2025
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Within the fast-paced world of cryptocurrency, centralized exchanges (CEXs) like Binance, Coinbase, and Bybit function gateways for brand spanking new tokens to achieve keen traders. Nevertheless, a staggering statistic from a March 31, 2025, report by The Cryptonomist reveals a sobering reality: 98% of recent tokens listed on CEXs expertise a value crash shortly after their debut. This phenomenon has left merchants and traders questioning the viability of leaping into these listings, whereas additionally sparking discussions about market dynamics, hypothesis, and long-term worth.

Why does this occur? What are you able to do to guard your investments and even revenue from these unstable alternatives? On this complete information, we’ll dive into the explanations behind this alarming pattern, present actionable tricks to navigate the chaos, and supply real-world examples that will help you make knowledgeable choices. Whether or not you’re a seasoned dealer or a newcomer to the crypto house, this text will equip you with the data to method new CEX token listings with confidence.

New token listings on CEXs usually observe a predictable sample: an announcement generates buzz, costs spike because of speculative shopping for, after which a speedy sell-off ensues. This hype cycle is fueled by early adopters and merchants seeking to capitalize on the preliminary pleasure. Nevertheless, as soon as the token hits the alternate, profit-taking and lack of sustained demand usually result in a pointy decline. The Cryptonomist report highlights that this sample is almost common, with 98% of tokens failing to keep up their listing-day features.

Centralized exchanges present liquidity and visibility, however in addition they entice manipulators. Skilled merchants usually purchase tokens on decentralized exchanges (DEXs) earlier than the CEX itemizing, driving up costs, solely to dump them as soon as retail traders flood in. This creates synthetic volatility and leaves latecomers holding the bag as costs plummet.

Many new tokens lack sturdy use instances or robust group help on the time of itemizing. With no strong basis — reminiscent of a working product, clear utility, or ecosystem adoption — these tokens battle to retain worth past the preliminary hype. The report underscores that solely a tiny fraction of initiatives show resilience, usually these with established fundamentals or strategic backing.

Broader market traits additionally play a job. In early 2025, crypto markets confronted vital turbulence, with Bitcoin dropping to $77,393 and altcoins following go well with because of macroeconomic components like commerce wars and regulatory uncertainty. New tokens, already weak, are hit hardest throughout these downturns, exacerbating their value crashes.

Earlier than investing, dig into the token’s whitepaper, crew, and roadmap. Does it clear up an actual drawback? Is there proof of improvement progress? Tasks like Solaxy (SOLX), which raised $29 million in presale by March 2025, present promise because of their utility as a Solana Layer-2 resolution. Examine this to speculative tokens like TST, which crashed after a short point out in a tutorial video sparked unfounded hype.

Keep away from shopping for on the peak of listing-day pleasure. Monitor buying and selling quantity and value motion post-listing — tokens usually dip inside hours or days as early sellers money out. For instance, Keyboard Cat (KEYCAT) surged 50% after Coinbase’s roadmap inclusion on March 28, 2025, however quantity spikes hinted at an impending correction. Ready for stabilization can cut back your threat.

Don’t put all of your eggs in a single basket. Allocate solely a small portion of your capital to new listings, balancing them with established belongings like Bitcoin or Binance Coin (BNB). This technique mitigates losses if a token follows the 98% crash pattern.

Be cautious of tokens with concentrated possession (e.g., prime 10 holders proudly owning over 10% of provide) or indicators of manipulation. BNB Chain’s $100M Liquidity Incentive, launched March 23, 2025, disqualifies initiatives displaying rug-pull dangers, providing a mannequin for recognizing safer bets.

Be part of crypto Discord servers like Jacob’s Crypto Clan or observe X influencers like Jacob Crypto Bury for real-time insights. These communities usually spot traits — just like the presale success of Pepe Unchained — earlier than they hit mainstream exchanges, providing you with an edge.

Use platforms like Coinbase Property or Binance bulletins to trace upcoming listings. As an illustration, Coinbase’s addition of KEYCAT to its roadmap on March 28, 2025, signaled potential, whereas Binance’s Alpha 2.0 rollout on March 20, 2025, spotlighted early-stage tokens.

Analyze the token’s fundamentals:

Utility: Does it have a transparent goal? Remittix (RTX), with its cross-border cost resolution, contrasts with meme cash missing substance.Workforce: Are they skilled and clear?Neighborhood: Examine X and Telegram for engagement ranges.

Determine how a lot you’re keen to threat — sometimes 1–5% of your portfolio for high-risk performs. Set stop-loss orders to restrict draw back publicity.

Use instruments like TradingView to observe value charts. Enter after the preliminary hype fades however earlier than a possible restoration, as seen with Solana (SOL) stabilizing after a 22% drop in January 2025.

Outline revenue targets (e.g., 20–50% features) and stick with them. Alternatively, maintain long-term if the mission exhibits sustained progress, like BNB’s rise from single digits to over $600 traditionally.

Solaxy, a Solana Layer-2 resolution, raised practically $29 million in presale by March 2025. Its promise of scalability and low-latency transactions positions it as a high-utility token more likely to buck the 98% crash pattern, with specialists predicting Tier-1 CEX listings quickly.

Talked about briefly in a BNB Chain video, TST soared to a report capitalization in February 2025 because of influencer hype, solely to crash as speculators dumped it post-listing. This exemplifies the hazards of hype-driven investments.

After Coinbase’s roadmap inclusion, KEYCAT jumped 50% by March 29, 2025, however confronted promoting stress amid a bearish market. Its 200% achieve from a March 10 low exhibits potential, but warning is warranted given broader market uncertainty.

The 98% value crash statistic for brand spanking new CEX-listed tokens is a stark warning, but it surely’s not the entire story. By understanding the drivers — hype, manipulation, and market situations — you may flip this volatility into a chance. Armed with thorough analysis, disciplined timing, and a diversified method, you may navigate these treacherous waters and probably revenue the place others falter. The crypto market rewards the ready — begin making use of these methods immediately to remain forward of the curve in 2025 and past.



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Tags: AhmedCapitalCEXcrashexperienceHatemListedMarPricetokens
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