'Binance Effect' Means 41% Price Spike for Newly Listed Tokens – Yahoo Finance

wp header logo 1141

Token prices spike 73% in the first 30 days following their listing on crypto exchange Binance, an analysis by crypto investor Ren & Heinrich has found.
The report, which tracked 26 coins over 18 months, showed a 41% increase a day after a listing on the world’s largest crypto exchange by market volume and 24% gain on day three. Ren & Heinrich’s findings offer evidence of a “Binance effect” that benefits tokens at least for the short term and resembles a similar “Coinbase effect,” a term first conceived in 2021 to account for price bumps that occurred soon after listings on that popular exchange.
A study in April 2021 by crypto-analysis firm Messari found that token listings on Coinbase led to a 91% price jump in the first five days of trading.
This week’s study by Ren & Heinrich suggests that Binance’s emergence as the dominant global crypto exchange might mean that its individual token listings are now getting a lot more attention – at least among speculators.
“In most cases, a Binance listing does have a positive impact on a cryptocurrency’s price,” Ren & Heinrich wrote.
A “Binance effect” appears to be a byproduct of the exchange’s massive trading volume, which far exceeds its competitors. On Thursday, the exchange’s nearly $7.5 billion in trading volume was about triple that of any other exchange.
Roberto Talamas, data science and analytics manager at Messari, said in general, the effect reflects an exchange’s “easy-to-use UX” that provides a simple gateway for crypto natives and non-crypto natives to purchase a token as well as the platform’s liquidity.
While among major exchanges only Coinbase listings had a statistically significant effect on price right after listing back in early 2021, “now that liquidity has concentrated more into Binance’s exchange, it’s possible their asset listing will have a higher effect on price,” Talamas told CoinDesk in an email.
Ren & Heinrich found that the average maximum price in the 30 days after the token listing was 73% higher than on the day of the first Binance listing.
Cross-chain bridge protocol Stargate Finance, for instance, saw its native token STG’s price surge 152% – from roughly 33 cents to over 80 cents – on the first day of its listing on Aug. 19, 2022, according to CoinGecko data.
Despite the immediate price jump, Ren & Heinrich said the positive momentum is “relatively short-lived.” After about two weeks, almost half of all analyzed cryptocurrencies had lost their gains. The analysis also noted that coins listed in the last bull market performed better than coins listed during the current bear market.
Messari’s Talamas attributed the Binance bump to the same easier “accessibility” for retail investors that drove the “Coinbase effect.”
“There is an argument to be made that if Binance manages to capture the users and funds from other centralized exchanges, and their liquidity and users increase, the bigger the effect becomes on prices from new listings,” Talamas said.
Grzegorz Drozdz, a market analyst at financial-services firm Conotoxia, estimated that in 2022 the price of around two-thirds of all newly launched tokens rose on Binance. The price of optimism (OP), for example, skyrocketed by more than 300% shortly after its debut on Binance.
“It seems that we could expect a greater upward reaction after the Binance listing in 2023, confirming the transition from the ‘Coinbase effect’ to the ‘Binance effect,’” he added.
The Federal Reserve’s 2022 consumer finance survey unveils a striking picture of American prosperity, revealing that the mean net worth of the average household has ascended to $1.06 million, a 23% from $868,000 in 2019. This statistic, while impressive, masks a more nuanced and unequal economic landscape. Despite the seemingly thriving financial status of American households, the reality is more complex, particularly for the middle class. The COVID-19 pandemic, which drastically impacted econom
Warren Buffett, the venerated investor and CEO of Berkshire Hathaway, is set to amass over $6 billion in dividend income in the coming year, with a significant portion of this windfall emanating from just three stocks. This substantial income stream underscores the effectiveness of Buffett's investment strategy, one that favors profitability and long-term value. Top Dividend Earners in Buffett’s Portfolio Buffett’s predilection for dividend-bearing stocks isn’t just a matter of preference; it’s
AT&T’s open RAN network announcement is a very disruptive move, with Ericsson benefiting from first mover advantage, but it’s a “big blow” to Nokia, Citi said.
(Bloomberg) — Ericsson AB won a $14 billion contract to modernize AT&T Inc.’s wireless network, agreeing to build an open network that can be supplied by a number of vendors and beating out its longtime rival Nokia Oyj. Most Read from BloombergHow Suspects Laundered Billions in Singapore for YearsHarvard Alumni Rebuke Its Israel Response With Mere $1 DonationsStocks Slip as Doubt Swirls Over Soft-Landing Bets: Markets WrapMoody’s Cuts China Credit Outlook to Negative on Rising DebtBitcoin Surge
You can't avoid taxes when making a Roth IRA conversion, but there are strategies to reduce your tax burden if the circumstances are right. When you convert money from a pre-tax account, such as a 401(k) or an IRA, to a post-tax Roth IRA, you must pay income taxes on the full value of the […] The post I Want to Convert $500k in My 401(k) to a Roth IRA. How Do I Avoid Paying Taxes? appeared first on SmartReads by SmartAsset.
The lessons have been hard, but should remind investors in the sector of some of the basic facts of investing.
JPMorgan Chase analysts warned in a new note to clients that the stock market faces more pain in 2024, projecting the S&P 500 will fall 8% by year's end.
Investors are looking to labor market readings as they decide whether to put hopes for an interest-rate cut on ice.
In 2018, former Amazon.com Inc. Founder and CEO Jeff Bezos expressed a distinctive view on stock market dynamics and company growth. Despite Amazon’s fluctuating stock prices, Bezos insisted, “I don't spend any time thinking about the daily stock price; I don't.” He elaborated on his philosophy during an interview at the Economic Club of Washington, D.C., saying, “At almost every all-hands meeting I say: ‘Look, when the stock is up 30% in a month, don't feel 30% smarter. Because when the stock i
Markets shouldn't rally as much as they are if they're pricing in recession-level Fed cuts, Mohamed El-Erian told CNBC.
No matter who you are or what tax bracket you're in, one thing is true: You want to take advantage of as many legally authorized tax breaks as you can. If you don't act fast, you may lose the opportunity to get a 20% cut on your investment income. Keep reading to find out how you can still take advantage of this tax break and possibly help get it extended in Congress. A Senator, The Tax Cuts And Jobs Act And Real Estate Investments One of the more controversial provisions of the Tax Cuts and Job
(Reuters) -U.S. stock index futures fell on Tuesday, indicating further losses on Wall Street as investors waited for a slew of data, including the crucial jobs report, to gauge whether the Federal Reserve will cut interest rates by early next year. After a strong run of gains in November that sent the S&P 500 to its closing high for the year, U.S. equities pulled back in the previous session as longer-dated Treasury yields bounced off three-month lows. A majority of traders expect the Fed has reached the end of its tightening campaign, given easing inflation, and have nearly fully priced in the likelihood that the central bank will keep rates unchanged next week.
Zacks.com users have recently been watching Alibaba (BABA) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
(Bloomberg) — Starbucks Corp. shares suffered a record run of losses as concern builds that sales trends at the coffee giant have cooled in recent weeks.Most Read from BloombergHow Suspects Laundered Billions in Singapore for YearsHarvard Alumni Rebuke Its Israel Response With Mere $1 DonationsStocks Drift as Doubt Undermines Soft-Landing Bets: Markets WrapBitcoin Surges Past $42,000 Even as Stocks and Bonds Take a HitMoody’s Cuts China Credit Outlook to Negative on Rising DebtThe stock dropped
Net income attributable to Kinder Morgan for 2024 is expected to be $1.21 per share, up 11% from its forecast of $1.09 per share for 2023, the company said. "We expect to continue benefiting from strong natural gas market fundamentals driving growth on our existing natural gas transportation, storage, and gathering and processing assets as well as expansion opportunities," Kim Dang, chief executive officer of Kinder Morgan, said in a statement. The pipeline operator also anticipates to benefit from increased rates in refined products businesses, demand for renewable diesel and renewable diesel feedstocks, and demand for renewable natural gas.
Stocks were poised for another day of losses on Tuesday, paring gains after a five-week winning streak as investors continue to adjust their expectations over the pathway for interest rates. Palantir shares fell 1.5% in premarket trading, extending losses after a 9.2% slide on Monday after analysts sounded the alarm on how data ownership concerns from customers—namely, the U.S. Army—could limit gains from future contracts. Palantir’s four-year, $458 million contract for the Army Data Platform is set to end within weeks.
The S&P 500 is adding three new members later this month. Here's why.
Cybersecurity stocks have underperformed in 2023. But cloud security companies may be better positioned as corporate budgets tighten.
The telecom giant’s move would replace existing equipment with gear that supports open network standards .
(Bloomberg) — Rockstar Games Inc. unveiled the first trailer for Grand Theft Auto VI a day early, after the video was leaked online.Most Read from BloombergHow Suspects Laundered Billions in Singapore for YearsHarvard Alumni Rebuke Its Israel Response With Mere $1 DonationsStocks Slip as Doubt Swirls Over Soft-Landing Bets: Markets WrapMoody’s Cuts China Credit Outlook to Negative on Rising DebtBitcoin Surges Past $42,000 Even as Stocks and Bonds Take a HitThe video features car crashes, alliga