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Decode the Binance November Listing Effect: How to Seize the Opportunity for Maximum Profit?

Dec 9, 11:30
Decode the Binance November Listing Effect: How to Seize the Opportunity for Maximum Profit?
Original Article Title: "BNB Hits New High Triggering Market Boom: Data Uncovers Binance Listing Effect"
Original Article Author: Viee, Biteye


"ACT was listed for less than 1 hour, and Twitter exploded."


In November, the listing of ACT and PNUT on Binance rapidly ignited the entire market. The price of ACT surged 10x in just 10 minutes. Some bought the A7 coin, some regretted selling too early. Coin holders became overnight millionaires, leading to the "Gold Rush" in the meme market in November, all chasing after the next 100x moonshot.


The fear of missing out spread like dominoes, triggering widespread speculation about Binance's listing strategy: Why did Binance choose these coins, and who will be the next lucky one?


The outstanding performance of ACT and PNUT has drawn attention to Binance's listing mechanism and sparked new thinking. Behind these narratives and celebrations, what kind of wealth code is hidden? Why can Binance repeatedly ignite the market? The following data analysis will fundamentally reveal the underlying logic of the "Binance Wealth Effect."

01 November Binance New Coin Deep Dive


From last month's new coin return rate data, Binance has demonstrated a highly synchronized and flexible strategy in project selection aligned with market trends. In the following table, we will deeply analyze Binance's listing logic from the perspectives of Wealth Effect and Coin Selection Bias.



1. Data Analysis: Most New Coins Listed on Binance Hit All-Time Highs


Historical data shows that the performance of new coins listed on Binance usually follows a cycle of "breakout - peak - pullback - stabilization." Taking ACT and PNUT as examples: in the early stage of listing, market sentiment is rapidly ignited, and prices surge to new highs within a short period; then they experience a natural pullback phase. Below, we will analyze each step:


Significant Short-Term Wealth Effect, Remarkable First-Day Gains


From the data, the wealth effect after new coin listings on Binance is particularly prominent, especially on the first day, becoming a crucial window for high returns. For example:


ACT: On the first day of trading, it surged by up to 2100%, with a peak increase of 4500%, bringing substantial returns to short-term investors.


PNUT: It saw a price increase of 255% on the first day, reaching a peak of 2118%, demonstrating strong market potential.


THE: As a non-meme coin, it had an outstanding performance on its debut day, with a peak increase of 197%, significantly outperforming its peers in the same category.


The explosiveness of these projects can be attributed to Binance's precise selection before listing. Additionally, the initial trading period often sees high market sentiment, with an influx of funds driving prices up rapidly, creating a short-term "wealth effect."


Rally Phase: Most New Coins Hit All-Time Highs After Listing


Data indicates that over 60% of tokens hit an all-time high (ATH) after being listed on Binance. This to some extent reflects the influence of new Binance listings in the market.


A closer look reveals that the performance of coins listed in the past three months has been particularly impressive, with 9 new coins rapidly achieving their ATH after listing on Binance, almost becoming "surefire gain" assets. Surprisingly, even among the 12 older coins, some that had previously reached highs in the last bull market or earlier this year experienced a resurgence with the support of the Binance platform, with 7 of them hitting new highs after listing on Binance. This demonstrates that, on the one hand, new coins often outperform established tokens, showcasing the market's enthusiasm for new projects. On the other hand, older coins can still break records, underscoring the powerful "Binance effect." Perhaps this is not only a sign of the market's fervent support for new projects but also a strong validation of Binance's listing strategy and platform appeal.


Post-Correction, Most Tokens Still Hold Investment Value


Although some new coins experienced corrections after experiencing short-term surges, overall, more than half of the tokens still maintain a significant increase from their listing prices, with gains exceeding 20%. Notable examples such as ACT, PNUT, DRIFT, THE, etc., demonstrate strong market resilience.


A pullback does not necessarily mean a complete loss of investment value; on the contrary, it may present an opportunity for potential long-term investment.

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1. Spot and Futures


Spot and futures trading are the most familiar ways for users to participate. When a new coin is listed, the spot market often sees a surge in prices. Especially in the case of this recent wave of meme coins, many players seized the opportunity for gains in the spot market. The futures market, on the other hand, is more suitable for traders seeking high leverage and returns, allowing both long and short positions to capture profits from market fluctuations.


Strategy: Conduct In-Depth Research on New Coin Projects, Avoid "FOMO"


Every time a new coin is listed, market sentiment tends to quickly heat up, but the real winners are often those players who have done their homework in advance. By conducting thorough research on aspects such as the project's whitepaper, tokenomics, and community activity, one can assess the true potential of the project.


2. Launchpool


Binance's Launchpool is the preferred choice for zero-risk mining and stable returns, providing users with the opportunity to stake assets such as BNB and FDUSD for mining rewards. Successful projects launched on Launchpool, such as ENA and TON, not only allow users to acquire project tokens but also enjoy high annualized returns. Earlier this year, Launchpool sparked a craze, with some projects offering annualized returns of over 200%, making it a key channel for chasing new coins.


The following chart by Biteye calculates the annualized return on investment for projects launched from 2024 onwards, based on publicly available Binance data.



Looking at data from nearly 20 Launchpool phases, most projects showed excellent APY performance on the first day of launch, with an average yield of over 100%. For example, Ethena achieved an APY of up to 288.86% on the first day of launch, and at its all-time high, the APY even reached an astonishing 447.7%. Similarly, Manta reached a historical high APY of 375.31%, demonstrating significant profit potential.


Furthermore, from the variety of coins launched, it is evident that there are many high-quality projects with strong fundamental support, which is one of the key reasons for their subsequent price increases. For example, Usual had an APY of 57.33% on the listing day, and its current market performance has surpassed the opening, with an APY of 78.40%. The same goes for ENA, currently with an APY of 282.72%, far exceeding its performance on the first day of listing.


Overall, Binance Launchpool not only provides a secure, low-threshold participation opportunity but also brings substantial returns. Additionally, Launchpool yields are stable, without the need to take on significant risks. Especially for users holding BNB long-term, the returns are significant.


Strategy: Focus on Launchpool and Airdrop opportunities to turn small gains into big wins


For investors with a lower risk appetite, participating in Launchpool and receiving BNB holder airdrops is an excellent entry method. Holding BNB allows not only for participation in mining but also helps reduce holding costs, serving as an important source of low-risk returns.



3. Pre-market Trading


Pre-market trading is a new feature provided by Binance, allowing users to buy and sell specific tokens before they officially launch in the spot market, enabling them to lock in a price advantage earlier. This stage usually sees significant fluctuations but also signifies potential high-reward opportunities.


Strategy: Make good use of pre-market trading to seize market opportunities


Pre-market trading offers an opportunity for early positioning but comes with significant volatility. Setting reasonable take-profit and stop-loss levels to avoid blindly chasing gains or losses is a core strategy for pre-market trading.


4. BNB Holder Airdrops


For users holding BNB long-term, airdrop activities are undoubtedly one of the most robust "earn while you sleep" methods, where holding brings earnings. Binance regularly takes snapshots of BNB holders and airdrops tokens of newly launched projects. For example, before the launch of some popular projects, BNB holders may qualify for token airdrops. At the end of November, the latest Binance HODLer airdropped the second phase of the project, Thena (THE), with an average of 1.455 THE tokens airdropped per BNB provided. The current single price of THE is around 2.9U, making the returns quite substantial.


5. Megadrop Web3 Wallet Tasks


The Megadrop platform offers two participation methods: locking BNB and completing Web3 tasks. Users can accumulate points through BNB subscription products, with longer lock-up periods and higher quantities resulting in more points. Additionally, the BNB locked up can automatically participate in Launchpool mining, achieving a "two birds, one stone" benefit without additional operations. For retail investors without a large amount of BNB, completing tasks in the Binance Web3 wallet also earns airdrop points, significantly lowering the participation threshold.


The previously announced Binance product yield list revealed that the standard annualized interest rate for subscribing to the BNB120 fixed-term product is around 3.5%.



The following chart shows the earnings estimate for two Megadrops, from which it can be seen that the annualized interest rate basically meets expectations and even exceeds 3.5%. If you also participate in Web3 tasks simultaneously, there is a chance to double the earnings, for example, the highest annualized rate for BounceBit can reach 9.7%.



Compared to Launchpool, Megadrop focuses on providing users with early participation opportunities before listing, while reducing the entry barrier through on-chain tasks to more user-friendly attract new users. Launchpool calculates rewards by staking BNB or specified tokens, covering more projects, and is suitable for long-term investors. Overall, Megadrop expands the audience range for Binance's token launches, injecting more vitality into BNB and Web3 wallets.


In summary, whether it's the classic spot and derivatives trading, or innovative Launchpool, pre-trading, and Web3 tasks, it can be seen that Binance's ambition is not limited to short-term surges, as it is shaping a comprehensive yield ecosystem.


03 How to Understand Binance's Listing Effect?


The Twitter crypto community is both a wealth amplifier and a narrative generator.


In the second half of 2024, the rise of the Meme market has become an undeniable trend. From classic SHIB to the recent hot ACT, the most significant feature of Meme coins is undoubtedly their high virality and strong community attributes. Unlike VC coins, the key to Meme coins lies in their narrative ability. Whether they can leverage community emotions determines the fate of the coin. Behind these tokens, there is not only liquidity but more of a cultural phenomenon and community drive. They can quickly self-propagate on social platforms, attracting a large number of investors and retail participants. This also makes the Meme market the main battleground for hot money.


As the market gradually moves towards rationality, Binance is also showing a more profound impact on long-term value.


For example, the liquidity protocol THENA (THE) recently launched by Binance belongs to low TVL, low market cap, and low funding projects. This indirectly reflects that Binance focuses on projects that can help the market develop in a healthier, more sustainable direction, screening for projects that bring more value to the industry, rather than just focusing on popularity and capital. This may lead to a movement towards the demystification of the crypto market bubble.


In this sense, Binance is more like a "wealth generator" that transforms tokens into a form of "narrative capital" through precise token selection, strict listing standards, and a powerful traffic amplification effect, driving the entire industry towards a healthier and more rational direction.


04 New Coin Practical Tips: Understand the Market, Keep Up with the Pace


Whether you are a newbie or a veteran, understanding Binance's multi-dimensional "listing" mechanism is just the first step. The real challenge is how to safely and efficiently seize opportunities in this process. This is a game that requires strategy, patience, and insight. Here are some battle-tested tips that may help you navigate the next opportunity with ease.


1. Monitor Market Dynamics and KOL Analysis, Pay Attention to Community Engagement


The crypto market is an emotion-driven market, especially during a new coin's listing period. Paying attention to KOL opinions on Twitter can often help you understand market sentiment. In addition, the key to the success of meme coins lies in community consensus, which can be captured in advance through social media, on-chain data, etc.


2. Seize the Best Entry Point, Mind Take Profit and Stop Loss


The initial listing period of a new coin is the most volatile, often accompanied by sharp surges and pullbacks. It is recommended to set clear entry and exit strategies to avoid emotional decisions. Especially within the first hour after the coin's debut, market sentiment fluctuates dramatically, requiring extra caution. Due to high volatility on the first day, set a take profit point to avoid missing opportunities due to greed.


3. Diversify Investments, Avoid the "All-In" Mentality


The market always carries risks. By diversifying funds across different new coin projects, you can not only reduce the impact of a single project's failure but also increase the overall stability of returns.


05 Conclusion


Every new coin listing is a market litmus test, a self-test for every player, and a competition about market trends, community strength, and investor mindset.


In the cryptocurrency wealth game, the real winners have always been those who understand the market and keep up with the pace. For the average investor, seizing the opportunity of a new Binance coin not only requires keeping up with the platform's trends but also a deep understanding of its listing logic.


Where will the next ACT, PNUT be? Stay keenly insightful, participate cautiously and flexibly. Binance has set the stage, but the story's outcome ultimately depends on us.


Original Article Link


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