• Token prices may drop over 80% after listing due to tight liquidity and high valuations.  
• Institutions and investors are shorting tokens to hedge against future price drops.  
• Binance is changing listing policies to require regular updates from listed projects.

With the crypto market continuing to stay volatile, analysts are warning of major drops in the prices of tokens after their listing on exchanges. According to AB Kuai Dong, a crypto analyst, he notes that projects that are gearing up to issue tokens should prepare for price drops of more than 80% once they go live.

Related: Crypto Community Repurposes Crypto Token For Speculation

This means a project initially valued at $2 billion might drop its market cap to $300 million, while a $700 million offering may decline below $100 million. These predictions come as market liquidity remains tight as high-value deman…

The post New Crypto Tokens Beware: Price Crash May Be Inevitable After Listing appeared first on Coin Edition.

• Token prices may drop over 80% after listing due to tight liquidity and high valuations.  
• Institutions and investors are shorting tokens to hedge against future price drops.  
• Binance is changing listing policies to require regular updates from listed projects.

With the crypto market continuing to stay volatile, analysts are warning of major drops in the prices of tokens after their listing on exchanges. According to AB Kuai Dong, a crypto analyst, he notes that projects that are gearing up to issue tokens should prepare for price drops of more than 80% once they go live.

Related: Crypto Community Repurposes Crypto Token For Speculation

This means a project initially valued at $2 billion might drop its market cap to $300 million, while a $700 million offering may decline below $100 million. These predictions come as market liquidity remains tight as high-value deman…

The post New Crypto Tokens Beware: Price Crash May Be Inevitable After Listing appeared first on Coin Edition.