Flow

2024

Token

Pyth Network

<p>In the ruthless world of cryptocurrencies, Binance, the giant of digital exchanges, has decided to position itself as a fixer of wrongs. In the face of a market where speculation and inflated valuations threaten to derail everything, Binance aims to play the white knight. The goal: to cleanse the crypto ecosystem and restore the image of an industry in search of maturity. Supporting sustainable and responsible projects thus becomes a priority, in the hope of averting the excesses that tarnish the future of digital currencies.</p>
<h2 id="h-binance-goes-to-the-frontline">Binance Goes to the Frontline</h2>
<p>In an initiative that could redefine the crypto ecosystem, Binance, author of a <a href="https://www.cointribune.com/en/binance-optimizes-crypto-transactions-and-adjusts-step-sizes/" target="_blank" rel="noopener noreferrer nofollow">reform on trading conditions</a>, has recently launched <strong><a href="https://cointelegraph.com/news/binance-urges-small-medium-projects-high-fdv-trend" target="_blank" rel="noopener noreferrer nofollow">a call for small and medium-sized projects</a></strong> to counter a troubling trend: the <strong>drop in float and the rise in fully diluted valuations (FDV)</strong>. On May 20th, the renowned crypto exchange invited these projects to <strong>join its listing programs</strong>, a gesture aimed at <strong>supporting initiatives with strong fundamentals and an organic community</strong>.</p>
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<p>The goal is clear: <strong>to improve the blockchain ecosystem</strong> by focusing on <strong>sustainable business models and dedicated teams</strong>, far from artificially inflated market capitalizations.</p>
<p>“<em>We hope to enhance the development of the blockchain ecosystem through our support for small and medium-sized projects with strong fundamentals, an organic community base, a sustainable business model, and a dedicated team acting as responsible industry participants</em>“, Binance stated.</p>
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<p>This stance echoes <a href="https://public.bnbstatic.com/static/files/research/low-float-and-high-fdv-how-did-we-get-here.pdf" target="_blank" rel="noopener noreferrer nofollow">a Binance Research report</a> dated May 17th, highlighting a worrying phenomenon: <strong>more and more token projects are being launched with low circulating supplies</strong>, leading to <strong>spectacular but ephemeral price increases</strong> during bullish markets. The cause? A lack of initial liquidity, followed by a wave of new crypto offerings upon unlocking, which eventually undermines the viability of these price increases.</p>
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   A new token is launched with a limited number of circulating pieces. Source: Binance Research
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<p>In short, Binance seems ready to play the role of a white knight in crypto armor, ready to defend small projects against the excesses of a market too often governed by unbridled speculation.</p>
<h2 id="h-behind-the-scenes-of-a-crypto-storm">Behind the Scenes of a Crypto Storm</h2>
<p>On May 17th, the mysterious crypto researcher known as Flow made a splash in the digital pond. According to him, <strong><a href="https://fr.cointelegraph.com/news/80-of-new-tokens-on-binance-in-freefall-investors-worried" target="_blank" rel="noopener noreferrer nofollow">no less than 80% of tokens</a> listed on Binance have seen their value plummet</strong> since their launch. The verdict is clear: these new tokens are often merely “exit liquidity” for insiders. They take advantage of a <strong>restricted initial offering to inflate prices</strong> before dumping everything, leaving small investors in the lurch.</p>
<p>May 2024 brings little respite, with <strong>nearly $3 billion worth of crypto tokens set to be unlocked</strong>. Major projects like Sui (SUI) and Pyth Network (PYTH) alone need to release over a billion dollars worth of tokens. The early investors are sitting comfortably, waiting for their moment.</p> 
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<p>And the future looks even more tumultuous. According to Binance’s calculations, based on data from Token Unlocks and CoinMarketCap, <strong>no less than $155 billion worth of tokens are expected to be unlocked between 2024 and 2030</strong>. A token avalanche that promises to put the market to the test unless demand and capital flows suddenly soar.</p>
<p>In this context, Binance, which has just tightened <a href="https://www.cointribune.com/crypto-binance-durcit-sa-conformite-reglementaire-sur-le-listing/" target="_blank" rel="noopener noreferrer nofollow">its regulatory compliance on listing</a>, is sounding the alarm. The massive release of tokens risks exerting unprecedented selling pressure, and without an influx of new crypto investors, the market could falter.</p>
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<p>This is a scenario worthy of the best financial tragedies, where small savers risk bearing the brunt of the machinations of the great crypto masters.</p>

Crypto: Binance sounds the alarm for drifting small projects!

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