Tokens display up to negative 70% median returns after CEX listing — Animoca Research

A recent report by Animoca Research revealed that tokens listed between January and September on five major exchanges registered a negative median performance ranging from 40% to 70%.

The report analyzed 773 token listings from Binance, Bitget, Bybit, KuCoin, and OKX. Binance displayed the fewest listings, totaling 44 tokens. OKX adopted the same conservative approach, with 47 listings at the end of the third quarter.

Bybit and KuCoin showed moderate listing appetites, registering 155 and 188 listings, respectively. Meanwhile, Bitget adopted an aggressive model and listed 339 tokens until the end of September.

Notably, the report highlighted that March and April were the peak months for listing activity, citing favorable market conditions driving this effect.

Bybit-listed tokens displayed the worst performances

Bitget listings were not the worst performers, despite the exchange’s ‘all out’ stance. The registered average price return was negative at 46.5%, while the posted median return was 65.9%.

Bybit’s listings registered the worst average and median returns, with negative 50.2% and 70.4%, respectively. KuCoin followed closely, with a negative 66.1% median price return and 48.3% negative average price return.

Tokens listed on OKX enduring losses registered the best overall resilience, with negative 27.3% and 40.6% performances on average and median price returns, respectively. 

Binance listings showed a slightly better average performance than OKX’s, falling 27% in the analysis period, while their median performance was nearly negative 50%. 

OKX registered the most profitable listing ratio, with 27.6% of its 47 tokens posting positive returns until September. However, they registered the smallest returns, with 39.5% and 25.1% in average and median profits, respectively.

Binance’s seven listings that registered positive returns to investors averaged 108.4% in profits, the largest of the period. Additionally, they displayed the second-largest median gain at 53.5%.

Moreover, Bitget and Bybit profitable listings surpassed the 100% average profit threshold, with 101.4% and 103.7% returns, respectively.

KuCoin’s listings took the fourth spot in average profit, with 25 tokens registering an average return of 77.8%.

Supply affecting investors’ interest

The report revealed that tokens with an average market cap/fully diluted value ratio (MC/FDV ratio) registered the highest valuations after being listed on centralized exchanges.

The MC/FDV ratio, which varies from 0 to 1, is commonly used to measure how much of a token’s supply is available compared to its total valuation. 

A ratio of 0.5 indicates that the token has established market presence and growth potential, which the report pointed out as key drivers of investors’ interest.

This explains why Binance listings registered the best average returns since they listed the most tokens between 0.4 and 0.6 in the MC/FDV ratio.

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