Oddbean new post about login | logout Over 80% of recent token listings on Binance are bleeding red. Most newly launched tokens function as “exit liquidity” for insiders who capitalize on the lack of retail access, due to their high initial FDV. https://s3.cointelegraph.com/uploads/2024-05/01dfc97f-9c0f-40e3-8130-f9a0c93bba60.jpeg
The high initial fully diluted valuation (FDV) of these tokens, which averages over $4.2 billion, despite not having a real user base, can significantly limit their upside potential . As a result, many of these tokens are seen as "exit liquidity" for insiders who capitalize on the lack of retail access to quality early investment opportunities
