BINANCE Effect 2020: YES, but what effect?
“When Binance?” Every crypto project has had this question asked at least once in their discussion forums. Is a Binance listing still a big thing in 2020? In this article, we look at projects that have been listed on Binance so far this year and the effect it had on the project’s performance in the market. Currently, you can get listed on Binance through the following ways: a paid listing or if you are lucky, free, an IEO, or through the Binance Community Coin Vote. This article does not discuss the project fundamentals and what we think the performance will be long term, but rather analyzes the prices they’ve had so far after getting listed on the largest cryptocurrency exchange in the world in terms of trading volume.
Binance Community Coin Vote
So far there have been 3 Binance Community Coin Votes this year. We will compare the price performances of the tokens that were up for listing.
Round 7: STPT vs IRIS
The battle between the decentralized applications pitted STP network against Iris Network. Standard Tokenization Protocol is an open-source standard defining how tokenized assets are issued and transferred while complying with all necessary regulations, while IRISnet is a blockchain infrastructure that serves as a communication relayer for other blockchains and their applications.
Before the community coin vote, STPT was trading at $0.02 and IRIS at $0.012. STPT subsequently won the vote and opened trading on Binance up 10% from when the announcement of the vote was made on March 17th while IRIS’s price stayed the same. The only time IRIS appreciated was during the first hour of the vote when it peaked at 8% from the time the announcement was made. A month after the vote, both coins are trading at $0.011 which represents a 45% decrease in price for STPT with IRIS falling only 8%. We are yet to see how it will end a little further down the line, but in this round, the winner lost.
Round 6: MBL vs VIDT
V-ID is a blockchain-powered data validation platform. The project aims to safely certify and secure all digital assets, so fraud and errors no longer hold back innovations in digitalization. In Round 6, V-ID went up against MovieBloc, a decentralized movie and content distribution platform based on the Ontology blockchain. MovieBloc eventually won the vote.
Before the community coin vote, MBL was trading at $0.0023 and VIDT at $0.18. After it was listed, MBL’s price appreciated 113% from when the announcement of the vote was made while VIDT’s price depreciated by 17%. The only time VIDT appreciated was during the first hour of the vote when it peaked at 33% from the time the announcement was made. A month after the listing, MBL price was down 50% from when the announcement of the vote was made, as compared to VIDT’s 67% fall.
Round 5: DREP vs NEW
The first community coin vote of 2020 saw DREP go up against Newton. By providing services around governance, collaboration, and incentives, Newton aims to build a community-based economy that benefits all contributing participants. The eventual winner, DREP, is committed to building connectors and toolkits based on blockchain technology, providing solutions that are flexible and convenient for developers and users in general.
Before the community coin vote, DREP was trading at $0.0023 and NEW at $0.0018. After the listing, DREP’s price appreciated 32.6% from when the announcement of the vote was made on March 17th. The only time NEW appreciated was during the first hour of the vote when it peaked at 3.7% from the time the announcement was made. After losing the event, NEW price depreciated by 15% from when the vote was announced. A month after the listing, DREP’s price was down 40% from when the vote was announced as compared to NEW’s 39% fall. Again, the loser of the coin vote is better off, marginally.
Judging from this, winning a community coin vote doesn’t have any significant effect on the price of a coin. From a trading point of view, the best time to cash out of a coin competing for the coin vote is an hour into the voting. All the coins voted for in 2020 hit their peak price gain during the first hour of the vote.
…the best time to cash out of a coin competing for the coin vote is an hour into the voting.
Premiere listing on Binance
Two coins had a premiere listing on Binance in 2020. Origin Protocol and Solana. Solana is not included in this report as at the time of writing, it had been trading for less than a month.
Origin Protocol provides a platform for building peer-to-peer marketplaces and e-commerce applications. It had its premiere listing on Binance in January 2020. OGN’s ICO price was $0.12. As at the time it was listed, OGN traded at $0.21. A month later it was up 100%. To date it’s still a bit above its price when it got listed.
Initial Exchange Offering
The next way of getting into Binance is through an IEO. WazirX, a cryptocurrency exchange with an advanced trading interface and features to buy, sell & trade cryptocurrencies was the first Binance IEO of the year. Its IEO Price was $0.02. As at the time it was listed, WRX traded at $0.07. A month later it was up more than 200%. To date it hasn’t gone below IEO price.
LTO Network is a hybrid blockchain designed for trustless B2B collaboration. It has been in existence since February 2019. Before it was announced that LTO was going on Binance, it was trading at $0.054. When it was listed, it saw a 122% increase in price. A month later, the price was up only 30% from the price it was at when the announcement of the Binance listing was made.
GRAVEYARD: Paid Listing on BINANCE
The last group is those which were listed elsewhere on other exchanges before moving to Binance. This is the last group you’d want to find yourself in. Read on to find out why.
TokenClub is a blockchain-based cryptocurrency investment platform, which provides investors with professional cryptocurrency market information, investment consulting & strategies, and other comprehensive services. It had been in existence since 2018. Before it was announced that TCT was going on Binance, it was trading at $0.013. The announcement caused a 31% increase in the price. A month later, the price was down 29% from the announcement of the listing on Binance.
After losing the Battle of the DAGs community coin vote against VITE in December 2019, COTI finally made it onto Binance in February of 2020. COTI is an enterprise-grade FinTech platform that enables cross-chain interoperability and is built on its own based chain. COTI has been in existence since 2019. Before the Binance announcement, COTI was trading around 0.03. After its listing on Binance, it fell 10%. A month later on March 26, the price was down 39% from the time it was listed on Binance.
In 2020, another set of coins that were listed on Binance were Leveraged tokens. They have since been delisted, not without some controversy which will be explored in the sequel to this.
Truth be told, it’s time to conclude that “When Binance” may be overrated. Is the Binance effect still happening in 2020? Yes, if you are an IEO or having your premier listing on Binance. If you are everybody else, think of ways to add value to your product. Your community will love you more. Paying all that much to get on Binance alone is not enough in itself.
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