Binance Listing: Influence on Cryptocurrency Price

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Binance Listing Influence on Cryptocurrency Price

At the end of the last year, any little news had a huge effect on the price of cryptocurrencies. Even the announcement of an announcement managed to fuel pumps of over 30 percent. A roadmap update or a small UE change to the wallet easily added another 40 percent to the price.

Since entering the bear market, however, things have changed. A lot. Nowadays, even seriously good news rarely triggers price hikes. That said, there is one thing that still seems to have a notable effect on prices: listing on top exchanges.

Binance listing: influence on cryptocurrency price

Binance is the largest crypto exchange by volume (US$500 million at the time of writing) and lists new coins regularly. If we’re looking to analyze the effect listing has on prices, Binance is the most logical place to start. 

The potential for profit from Binance listings was over 100 percent at the beginning of 2018, right after the bull run.

But how strong and durable has that effect been over the past six months?

Binance sometimes makes an announcement one day before listing a coin on its exchange. Other times it just makes an announcement on the day of the listing. Without going into reasons for the difference in announcements, let’s see how both cases influence the price of the coin.

We analyzed 11 coins that have been listed on Binance over the past six months, excluding community-voted listings such as Polymath (POLY) and PundiX (NPXS).

There are five different price points for each cryptocurrency:

  1. One week before listing – the highest price
  2. One day before listing – the highest price
  3. Day of listing – the highest price
  4. Day of listing – closing price
  5. One week after listing – the highest price.

Decred (DCR)

Decred was listed on October 24, 2018.

  • One week before listing: $39.97
  • One day before listing – announcement: $54.03
  • Day of listing – highest price: $52.84
  • Day of listing – closing price: $47.72
  • One week after listing: $40.24
Decred (DCR) Binance listing.

Ravencoin (RVN)

Ravencoin was listed on October 12, 2018.

  • One week before listing: $0.016153
  • One day before listing – announcement: $0.023938
  • Day of listing – highest price: $0.021805
  • Day of listing – closing price: $0.01961
  • One week after listing: $0.031612
Raven (RVN) Binance listing.

GoChain (GO)

GoChain was listed on September 12, 2018. 

  • One week before listing: $0.074697
  • One day before listing – announcement: $0.061180
  • Day of listing – highest price: $0.060376
  • Day of listing – closing price: $0.045787
  • One week after listing: $0.039634 
GoChain (GO) Binance listing.

Dock (DOCK)

Dock was listed on July 30, 2018.

  • One week before listing: $0.050157
  • One day before listing – no announcement: $0.052776
  • Day of listing – highest price: $0.082598
  • Day of listing – closing price: $0.0587
  • One week after listing: $0.034367 
Dock (DOCK) Binance listing – no announcement.

Holo (HOT)

Holo was listed on July 24, 2018 

  • One week before listing: $0.000462 
  • One day before listing – announcement: $0.000982
  • Day of listing – highest price: $0.001017
  • Day of listing – closing price: $0.000865
  • One week after listing: $0.000718 
Holo (HOT) Binance listing.

 

Ardor (ARDR)

Ardor was listed on July 18, 2018. 

  • One week before listing: $0.157397 
  • One day before listing – no announcement: $0.177549
  • Day of listing – highest price: $0.276239
  • Day of listing – closing price: $0.235409
  • One week after listing: $0.216139 
Ardor (ARDR) Binance listing – no announcement.

Dent (DENT)

Dent was listed on July 7, 2018. 

  • One week before listing: $0.003951 
  • One day before listing – no announcement: $0.003608
  • Day of listing – highest price: $0.009077
  • Day of listing – closing price: $0.007303
  • One week after listing: $0.004147 
Dent (DENT) Binance listing – no announcement.

 

MainFrame (MFT)

Mainframe was listed on July 5, 2018, and that was its first listing after its ICO.

  • Day of listing – highest price: $0.021507
  • Day of listing – closing price: $0.019935
  • One week after listing: $0.017894 
MainFrame (MFT) – Binance was its first listing.

Nebulas (NAS)

Nebulas was listed on June 28, 2018.

  • One week before listing: $5.56 
  • One day before listing – announcement: $5.17
  • Day of listing – highest price: $5.30
  • Day of listing – closing price: $4.70
  • One week after listing: $4.94 
Nebulas (NAS) Binance listing.

SelfKey (KEY)

SelfKey was listed on June 27, 2018.

  • One week before listing: $0.008040 
  • One day before listing – no announcement: $0.007235
  • Day of listing – highest price: $0.011549
  • Day of listing -–closing price: $0.008020
  • One week after listing: $0.032110 
SelfKey (KEY) Binance listing – no announcement.

SiaCoin (SC)

SiaCoin was listed on June 14, 2018.

  • One week before listing: $0.017530 
  • One day before listing – no announcement: $0.013140
  • Day of listing – highest price: $0.015539
  • Day of listing – closing price: $0.014151
  • One week after listing: $0.012916 
SiaCoin (SC) Binance listing.

Binance effect: listing day

Of the cryptocurrencies we analyzed, 70 percent increased in value on the day of their listing on Binance compared to the day before. This excludes MainFrame coin, as Binance was its first listing.

That’s a drop compared to the beginning of the year, when all 15 cryptocurrencies listed from March to April increased in value on the day of listing on Binance compared to the day before.

Analyzed cryptocurrencies that increased in value did so by around 50 percent on average on the day of listing. This is where it gets interesting.

To announce, or not to announce?

There is a stark difference in the price movement of coins whose listing gets announced one day in advance compared to those that get listed unexpectedly. Of those coins whose value increased on the day of listing, the announced coins increased by a mere three percent, while the non-announced ones grew by 68 percent!

If we focus on the announced coins, 60 percent of them actually dropped in value on the day of listing compared to the day before. They dropped by around four percent on average. On the other hand, all the coins that were unexpectedly listed rose in value on the day of listing.

If you’re thinking of buying a coin on the day of the announcement and selling the next day when it actually gets listed, think again. It’s more likely that the price will drop than rise.

On the other hand, if you want to speculate on coins that get unexpectedly listed, you should be very careful. Research the historical behavior of other coins in the hours and even minutes prior to, during, and after the listing before you make such a risky decision. You should also take into account the “week-later” effect.

Binance effect: one week later

The value of nine out of 11 cryptocurrencies dropped one week after their listing. Those nine dropped by around 30 percent on average. That’s quite a difference since the beginning of the year, when half of the listed cryptocurrencies maintained a certain amount of increased value over the two-week period after their listing.

The Binance effect has obviously diminished since the start of the year. Anyone who wants to speculate on it should be very careful when placing their orders.

Delisting from Binance: the other side of the coin

There’s one word to describe the effect of delisting from Binance: brutal.

On October 9, 2018, Binance announced that it would delist four coins in three days: Bytecoin (BCN), ChatCoin (CHAT), Iconomi (ICN), and Triggers (TRIG). The announcement hit those coins hard.

Iconomi (ICN) handled it best, dropping by 13 percent from the announcement to two days after the delisting.

Bytecoin (BCN) crashed by 25 percent on the day of the announcement. Two days after its delisting, it had dropped by 42 percent.

ChatCoin (CHAT) crashed by 35 percent on the day of the announcement, and by 46 percent from the announcement to two days after its delisting.

Their prices now, almost six weeks later, are even lower.

Triggers (TRIG) coin, which was supposed to power the “Smart Guns” industry, disappeared from CoinMarketCap altogether.

While results vary from coin to coin, there’s no doubt that listings on major exchanges still have an effect on cryptocurrency prices.

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1 Comment
  1. BayerX 3 weeks ago
    Reply

    I wonder why are they announcing some listings and not the others

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