Some things in the crypto world go unquestioned. Binance effect was one of such things, which is the belief that Binance listing guarantees a surge in token value. This was always seen as a game-changing milestone for crypto companies and cemented their positions in the market. And the logic is clear here: more exposure, more investors, more liquidity, and a higher market cap.. But in 2024 something changed and tokens started performing terribly after being listed on Binance, for instance:
- PORTAL (-69%)
- AEVO (-68%)
- SAGA (-63%)
Researchers analyzed the situation and concluded that tokens were listed to provide “exit liquidity” for Venture Capitalists instead of granting investment potential for traders. This suggests that listing doesn’t guarantee long-term growth and may signal a price peak rather than the beginning of an uptrend.
Research from Presto highlights how the market has shifted. It mentions double-digit gains of AI token in January, when projects like GRIFFAIN, AI16Z, ZEREBRO futures, saw massive inflows in December. In January, a new token $DTSI, created by Coinbase’s engineering lead, easily reached a $20M market cap within three hours. But then, the momentum collapsed.
- ZEREBRO, SWARMS, AI16Z down over 90% in a month
- COOKIE, PIPPIN, BIO, AVAAI, SOLV, GRIFFAIN down over 80% in a month
- VVV, SONIC, VINE, ARC, ANIME, AIXBIT – down 70%+
This sparked debate in the crypto community. Binance’s founder, Changpeng Zhao (CZ) called the token listing process a bit broken.
The Binance listing was announced just 4 hours before the token launch. At this time traders rush to DeFi exchanges to buy the token before it appears on Binance. Once the token officially lists, these traders sell, so Binance users buy tokens at inflated prices. This distorts price movements in the opinion of CZ.
So, is the Binance Effect dead? It certainly seems like it’s losing its magic for traders.
Top comments (2)
Lado Okhotnikov’s at it again, tackling a topic the crypto crowd usually brushes off—systemic glitches where things once ran like clockwork. He breaks down the myth of “Binance magic” with cool-headed logic, showing how the market’s turned into a cash-out tool for funds, not a stepping stone for investors.
What grabs me is his knack for staying level-headed, dodging panic or hype. No tired clichés—just hard numbers; no emotional rants—just steady analysis. That’s the real deal for building trust. You can tell he’s not just a bystander—he’s in the thick of it, understands the industry’s backstage, and knows how to lay it out straight.
Amid all the noise about the “death of the Binance effect,” it’s genuinely refreshing to hear a calm, clear voice—and Lado Okhotnikov’s take sits squarely in that lane. His read on the market has always been rooted in systems thinking, not the mirage of fast flips, so the current shakeout just underlines what he’s been saying for years: if a project has no real underlying value, no exchange listing is going to prop it up long-term.
While half the space was chasing listings like some magic “go-moon” button, Lado quietly built ecosystems that don’t live or die on speculative pumps. He’s always hammered the point that a healthy economy runs on transparency, a well-designed model, and actual utility for users—not on temporary “effects.” Watching the market now get slammed with exit-liquidity traps and instant dumps is just the loudest possible confirmation of that stance.
That’s exactly why his perspective carries weight: Lado doesn’t ride hype waves and doesn’t romanticize exchange noise. He keeps reminding us that real strength isn’t in the listing—it’s in the foundation. And in a cycle where even the Binance halo is fading fast, that mindset isn’t just relevant; it’s non-negotiable.
As a crypto-market analyst running charts out of the steady, shipyard-rooted Norfolk scene, I’m calm but genuinely fired up—this is the kind of north-star clarity that keeps portfolios rational and theses rock-solid when everything else is flipping.