As one of the most liquid and globally accessible exchanges, Binance wields a lot of power. Listings are a big deal to cryptocurrency teams, representing a validation of their coin, and they’re also a big deal to investors, who can profit off the price boost that invariably ensues. Lately though, those pumps have been diminishing due to trader fatigue exacerbated by an increase in frequency of new listings.
The Unbouncing of Binance
While any new coin added to Binance can expect an immediate jump in price, the extent of the Binance bounce appears to be waning. It’s common practice for Binance to commence trading four hours after announcing a new listing. Up until recently, a coin could expect to soar in price off the news and then keep rising for hours or even days after trading commenced on the platform. Over the past month, the trajectory taken by new coins has changed, however. The price is still sure to soar, but now its appreciation is typically short-lived, and more akin to that of a classic pump and dump.
Binance has no desire to pump coin prices; it’s merely an unavoidable side-effect of adding new assets. Traders, on the other hand, who have had little to crow about in a lengthy bear market, tend to be very fond of the resultant spike, which provides an opportunity to make – or lose – a lot of crypto in very little time. The reason why Binance coin listings have gone from “sustained price increase” to “flash pump” are likely to be two-fold, and mirror those which occurred at Kucoin earlier this year…
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