A jackpot just by listing?...90% of new altcoins become 'worthless' within a year

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Nine out of ten new altcoins listed on major cryptocurrency exchanges plummet below their listing price within a year, inflicting massive losses on individual investors.

According to crypto media outlet BeInCrypto on April 10 (local time), data analysis firm CoinGecko analyzed the listing performance of 12 major centralized exchanges (CEXs) and found that 90% of newly listed altcoins (ALT) fell below their listing price within 12 months. Reporter Kamina Bashir cited this report, stating that the investment strategy of chasing price surges that occur immediately after listing on major exchanges proves to be very risky in the long term. The analysis showed that less than 10% of tokens maintained their listing price after one year on top-tier exchanges.

In the case of Upbit, a major Korean exchange, the disparity between initial listing performance and long-term performance was most pronounced. Altcoins listed on Upbit showed the best initial performance among the analyzed exchanges, with 67% rising within 30 days of listing. However, at 300 to 329 days after listing, 0% of them maintained an upward trend. This suggests that initial price increases are likely bubbles driven by short-term trends or artificial supply restrictions rather than genuine demand.

Looking at the overall data from the 12 major exchanges, only about 32% of tokens saw their prices rise immediately after listing. This means that two-thirds of newly listed tokens turn bearish as soon as trading begins. Even tokens that showed an upward trend for the first few days after listing mostly failed to sustain their initial momentum and entered a downtrend. The data shows a consistent pattern that price surges occurring in the early stages of listing rarely lead to sustained value appreciation.

Editor Harsh Notariya diagnosed that this report delivers a clear warning message to individual investors. This is because the major positive news of listing on a large exchange carries a high risk of being used as a means for profit-taking or offloading rather than actual value proof. In particular, despite the differing listing criteria and post-listing management systems across exchanges, the fact that most tokens fail to withstand a year and decline confirms the high volatility and risk of altcoin investment.

The widespread price drop phenomenon of newly listed altcoins is pointed out as a chronic problem in the cryptocurrency market. Investors should thoroughly review the actual validity of a project and its potential for long-term ecosystem building, rather than deciding to invest solely on the news of an exchange listing. The statistical figure of a 90% drop hidden behind initial listing returns is the indicator market participants should be most wary of.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*