A crypto researcher, known as "Flow" on social media, has conducted an in-depth analysis of the profitability of new altcoins listed on centralized exchanges like Binance. The findings suggest that these new tokens are not as lucrative as they once were, with a significant decline in value and performance.

According to Flow's research, 80% of new altcoins listed on Binance in the past six months have seen their value drop below their initial listing price. Most of these tokens were listed between November 2023 and May 2024, with some experiencing significant declines. For instance, BLUR, listed on November 24, 2023, plummeted by 45.6%, while PORTAL, listed on February 20, 2024, saw a massive 69.2% drop.

Only a few tokens, such as ORDI and WIF, recorded significant gains, while others like JTO and JUP saw gains above 50%. However, if investors had diversified their portfolios by investing equal amounts in each of Binance's newly listed tokens, they would have suffered an 18% decline over the past six months.

Flow attributes this decline to the high Fully Diluted Valuation (FDV) at launch, which removes most of the upside potential. He notes that most tokens listed on Binance are backed by Tier 1 VC and launch at extremely high prices, resulting in substantial profit-taking and a significant decline.

The researcher concludes that new altcoins launching on Binance are no longer profitable investment vehicles and serve as exit liquidity for insiders, who exploit retail investors' limited access to quality investment opportunities. He also highlights that newly listed crypto projects on Binance lack real users or a strong community backing them, leading to unsustainable growth and discrediting the broader crypto industry.

In essence, investing in newly listed tokens has become a risky game, with founders and insiders benefiting at the expense of ordinary investors. As economist Alex Kruger puts it, "Most tokens launching these days are engineered to pump and inevitably dump."