Once a catalyst for explosive growth, Binance listings no longer guarantee success for tokens. The trend, which saw significant bullish rallies in 2017 and 2021, has reversed due to changing investor dynamics and market strategies.

In the past, getting listed on Binance could spark a sustained price surge for cryptocurrencies, attracting retail investors and driving long-term gains. However, the landscape has shifted significantly as early-stage investments are increasingly dominated by venture capitalists (VCs) and large funds. These entities often use retail investors as exit liquidity, diluting the potential for substantial returns.

The crypto community has been abuzz with discussions about a perceived VC and Centralized Exchange (CEX) cartel. Allegedly, teams are pressured to launch their tokens at the highest possible fully diluted valuation (FDV) on top-tier centralized exchanges. This strategy aims to provide VCs and insiders with a profitable exit, but it leaves new investors with diminishing prospects.

Researcher Flow, known on X as @tradetheflow_, has scrutinized the performance of 31 tokens listed on Binance over the past six months. His findings reveal a stark reality: only five tokens have appreciated since their listing. ORDI leads with a 261.9% increase, followed by JTO at 62%, JUP at 58%, and WIF at 117%. In contrast, several tokens have plummeted: NFP by 62%, PORTAL by 69%, AEVO by 68%, SAGA by 63%, and others by similar margins.

The average FDV for these new listings was a staggering $4.2 billion, with some reaching as high as $11 billion. Despite such lofty valuations, many of these projects lack a real user base or robust community support. If an investor had created a portfolio with equal investments in each of these new listings, they would have faced an 18% loss over six months.

Most new tokens listed on Binance are heavily backed by tier-1 VCs and launched at inflated valuations. The initial hype quickly dissipates, resulting in a steady decline in token prices. This trend underscores a significant shift in the market: new Binance listings are no longer reliable investment vehicles. Instead, they have become mechanisms for insiders to offload their stakes, exploiting retail investors who lack access to early, high-quality investment opportunities.

Launching tokens at high FDVs leads to persistent price declines and diminished market interest, ultimately causing the tokens to fail. The once-legendary 'Binance pump' has become a relic of the past, replaced by a landscape where new listings struggle to maintain their value.