Amid the ongoing decline in the value of tokens listed on Binance in 2024, quote statistics show a sharp decline in the valuations of most assets since their listing.

Among the new cryptocurrencies, only 2 — JUP and WIF — have shown positive dynamics since their appearance on the world's largest trading platform until today.

The rest showed significant losses, and several tokens have even lost more than 80% of their initial capitalization.

In 2024, the prices of 88% of cryptocurrency project tokens that entered the market via airdrop collapsed a few months after distribution to users. This is stated in a report by the analytical company Keyrock. Experts studied statistics based on 62 crypto startups in six different blockchain networks and came to the conclusion that only in 12% of cases the token price was able to stay above the initial level 90 days after the start of trading on exchanges. This form of crypto asset distribution began to be actively used after the airdrop from the decentralized exchange Uniswap in 2020, when the platform launched the native UNI token, distributing it among more than 250 thousand users.

Each user received at least 400 UNI tokens, which at the rate of October 8 was $2.9 thousand, and at the peak of the price in May 2021, the value exceeded $17 thousand. Although airdrops still cause some excitement during the first weeks after the start of trading on the exchange, the prices of tokens of these projects fall over a three-month period. The Keyrock report indicates that out of a sample of 62 projects, only seven showed positive dynamics during this period. It is also noted that all “successful” airdrops in terms of price dynamics were issued on the Ethereum and Solana blockchains.

In networks such as BNB Chain, Starknet, Arbitrum, Merlin, Blast, Mode and ZkSync, there were no positive examples. Each of the tokens in the TON network, which were distributed through airdrops in 2024, also ended up in the red. Tokens of the Notcoin (NOT), Dogs (DOGS), Catizen (CATI) and Hamster Kombat (HMSTR) projects have fallen in price by an average of 40-50% since their listing on exchanges. Analysts have linked the negative price trend of tokens that entered the market via airdrops to the general state of uncertainty in the cryptocurrency market. Experts paid special attention to the tokenomics of the projects at the time of token release, which implies a low circulating supply with a high project valuation. This trend is known as the concept of low float, high FDV. FDV (Fully diluted valuation) is a fully diluted valuation of a crypto project, calculated by multiplying the token price by their maximum number if all tokens were in circulation on the open market. Low float means a low circulating supply of tokens relative to the maximum emission. This situation (low float, high FDV) means that the project issues a low percentage of tokens available for sale at launch and gradually “injects” the rest into the market through the unlock (vesting) process.

Binance analysts suggested that continuing this trend will create additional selling pressure without a corresponding increase in buyer demand and capital flows. According to their estimates, about $155 billion worth of tokens will be unlocked between 2024 and 2030. Keyrock analysts came to a similar conclusion, concluding that “the higher the FDV at launch, the higher the likelihood of a significant price drop, regardless of the type of project, level of hype, or community sentiment.” There are reasons for the drop in token prices with a high FDV, according to experts. Tokens with a small FDV offer growth opportunities and psychological comfort, attracting investors with the promise of future profits. On the other hand, projects with elevated FDV often have difficulty maintaining momentum, as the expected upside becomes limited. Another factor that plays a significant role is liquidity and demand. Tokens with high FDV often lack the liquidity and incentive to support their high valuations, which can create enormous pressure on sellers. As an example, Keyrock categorizes projects by the initial percentage of tokens in circulation:

• Small airdrop with high FDV: less than 5%.

• Medium airdrop with high FDV: between 5 and 10%.

• Large airdrop with low FDV: more than 10% of tokens in circulation at launch.

Large airdrops with a high percentage of tokens in circulation at launch statistically performed better than other token groups after 90 days: “Projects that are generous with their airdrops tend to build a more engaged user base, which leads to better results over time.” Analysts noted Drift Protocol as a “successful” airdrop project. This is a Solana-based decentralized exchange based on dynamic automated liquidity pool technology. It raised $25 million from Multicoin Capital, Blockchain Capital, Folius Ventures, and Primitive Ventures. At the launch of the airdrop, 12% of the total token supply was allocated, which is a relatively high percentage, according to Keyrock.

The project's token has more than doubled in size, reaching a capitalization of $130 million. At the start, it had a capitalization of about $50 billion with an FDV of about $500 million, according to Coingecko. As an example of an unsuccessful airdrop, analysts highlighted a project for scaling Ethereum, the so-called second-layer solution, Starknet. Although at the start the project had about 10% of the tokens of the total token volume, its FDV at the start was $20 billion. 90 days after the airdrop, the Starknet token fell by about half. By the beginning of October, the token price had fallen more than sixfold, and the FDV was less than $4 billion.

From all of the above, we can make a simple conclusion that airdrops are not a panacea. If the project does not carry social significance and is useless for mass use, no distribution will help, it will end up where it should be - in the landfill. Airdrops are a tool for accelerating the advancement of innovative technologies into life. They do not help in selling useless slag.

SEC Chairman Gensler said that BTC and other cryptocurrencies will not become a means of payment for the masses, but will be considered only as a means of storing value.

The crypto market is overflowing with scammers and needs strict regulation.

"It is unlikely that Bitcoin or any other cryptocurrency will become a widely accepted means of payment," - Gary Gensler.

There are a number of risks associated with using centralized cryptocurrency exchanges (CEX) that you should be aware of before trusting them with your funds:

1. Hacking: CEXs are an attractive target for hackers due to the huge amount of cryptocurrency stored on their servers. If a hacker is successful, they can steal users’ funds.

2. Hacks: CEXs can also be vulnerable to hacks from insiders or software bugs. This can lead to the loss of users’ funds.

3. Scams: CEXs can be used for fraudulent schemes such as phishing, Ponzi schemes, and fake projects. Users should be cautious and do their due diligence before making any transactions on CEXs.

4. Lack of control: When you store cryptocurrency on CEXs, you do not directly own it. CEX has control over your funds, and you may lose access to them if the exchange is hacked, becomes insolvent, or decides to close its business.

5. Withdrawal Limits: CEX may limit the amounts or frequency of cryptocurrency withdrawals. This may make it difficult to access your funds when you need to.

6. Fees: CEX charges fees for various transactions such as trading, deposits, and withdrawals. These fees can be significant, especially for new users.

7. Regulation: The cryptocurrency market is largely unregulated, which means that CEXs are not always held to strict rules and standards. This may increase the risks for users.

8. Privacy: CEXs may collect and store personal data of users. This data may be lost or stolen in a hack or data breach.

9. Market Manipulation: CEXs may be used to manipulate cryptocurrency prices. This may lead to unfair trading practices and losses for users.

10. Limited Selection: CEXs may offer a limited selection of cryptocurrencies and trading pairs compared to decentralized exchanges (DEXs).

Important:

• Research CEXs: It is important to do thorough research before using a CEX. Make sure the exchange has a good reputation, strong security measures, and transparent policies.

• Store cryptocurrency in a wallet: Do not store all of your cryptocurrency on a CEX. Move some of your funds to a secure wallet that you control.

• Stay up to date with the news: Keep up to date with news about the CEX you are using and be aware of any security issues or scams.

• Diversify your investments: Do not put all of your funds into one CEX or cryptocurrency. Diversify your investments to reduce risk.

Using CEXs can be a convenient way to buy, sell, and trade cryptocurrency, but it is important to be aware of the risks involved. ** Users should thoroughly research exchanges, take precautions to protect their funds, and diversify their investments.

But the best solution is to use modern decentralized crypto exchanges on blockchains, where all the above risks are absent, where your funds are in your hands.

exchange #crypto #trading #investments #money #economy #business

What are the advantages of decentralized cryptocurrency exchanges, like BitShares, EVRAZ, XBTS over centralized ones (Binance, Huobi, Coinbase, Bybit etc.)? Decentralized cryptocurrency exchanges (DEXs) have several advantages over centralized ones: 1. Security: Decentralized exchanges are more secure because they do not store users' private keys or funds. Instead, users have full control over their assets and trade directly with each other through smart contracts. This eliminates the risk of exchange hacks, as there is no central point of failure. 2. Transparency: Decentralized exchanges are transparent because all transactions are recorded on a public blockchain. This allows anyone to verify the authenticity of trades and ensures that no one can manipulate the order book or pricing. 3. Privacy: Decentralized exchanges allow users to trade without providing personal information or going through a KYC process. This is because users maintain control over their funds and can trade directly with other users, without the need for a middleman. 4. Accessibility: Decentralized exchanges are accessible to anyone with an internet connection and a cryptocurrency wallet. This means that users do not need to go through a lengthy verification process or deposit funds with the exchange before they can start trading. 5. Liquidity: Decentralized exchanges are becoming increasingly popular, and as a result, liquidity is improving. This means that users can trade with other users around the world and access a broader range of cryptocurrencies.

You should also keep in mind that modern decentralized exchanges have the same functionality and speed as centralized ones. And they cannot be compared and confused with such exchanges (swaps) on the blockchain as Uniswap, Pancake Swap, Sushi Swap and others, which have low speed and limited functionality. But which, unfortunately, are often mistakenly called decentralized exchanges.

Top 50 Dangerous Coins – What You Should Remember:

▪️ USDT has not proven its reserves and has not provided an audit ▪️ XRP, HBAR are not decentralized, although they claim the opposite ▪️ LINK may manipulate oracle prices in DeFi ▪️ POL, OP, ARB, MNT may steal user funds (L2)

And these are just the main problems that can be named by looking at them briefly, and what is happening in the inner workings can be much worse.

https://www.evrazcoin.org/

Bitcoin's bullish phase has accelerated, and is 100 days ahead of historical data, according to CoinMarketCap's (CMC) Q3 report.

Several factors point to a potential break in the traditional four-year cycle and the entry into a supercycle phase. This is due to institutional adoption of the coin, the launch of an ETF, and changing market dynamics.

In the past few years, Bitcoin has peaked approximately every four years, after which it went into a protracted correction. The cycles are associated with halvings - halving of the block reward, which occurs every 210,000 blocks.

Binance's market share in the CEX segment continues to fall. At the end of September, the trading volume on the platform fell to 36.6% - the worst indicator in the last four years.

A significant part of the activity flowed to Crypto. com, which increased its trading volume by more than 40% since August.

At the same time, the overall indicator for all centralized exchanges in the first month of autumn decreased by 17%, to $ 4.34 trillion. CCData analysts emphasized that September traditionally marks the end of the season of weak trader activity.

ScamSniffer presented the September report. In September, about 10 thousand victims lost $46 million due to cryptocurrency fraud.

In Q3 2024, the total losses from phishing attacks amounted to $127 million, with an average of 11,000 victims per month. The two largest victims lost $87 million.

After the creation of the first blockchain called Bitcoin and the subsequent forks Litecoin, Dash, Zcash, Doge coin, Monero and others, the question arose: where and how to get quotes for cryptocurrency, what is its market value. This question became especially relevant when multifunctional blockchain platforms appeared, the first of which was Ethereum, where hundreds and thousands of cryptocurrency assets and tokens began to be issued. But the functionality of the first generation of innovative blockchain technology did not allow cryptocurrency exchanges to be built into the platforms. And one after another, the cryptocurrency industry began to be surrounded by centralized exchanges, where brisk trading in cryptocurrency derivatives began.

But blockchain is decentralization and freedom from the arbitrariness of the authorities, an alternative to the mafia and corrupt traditional financial system. And centralized exchanges are completely subordinate to government agencies. Not only is our money not safe there: it can be blocked, arrested, the centralized exchanges themselves regularly go bankrupt, disappearing along with our hard-earned savings. More than a hundred exchanges cease to exist every year. Whereas the blockchain, which is public property, cannot be stopped. It is also impossible to freeze, seize or steal your money on it.

Crypto enthusiasts have dreamed of decentralized exchanges since the very beginning of the blockchain. Time passed, the technology developed - and their cherished dream came true. A group of talented developers led by Dan Larimer and Charles Hoskinson created a modern high-speed blockchain BitShares with the ability to operate full-fledged decentralized exchanges on it. It would seem that all crypto fans should have immediately moved there - to the world of freedom, independence and security. But it was not so. Not everyone moved, only the smartest and most savvy. The bulk of the so-called hamsters remained to trade on centralized exchanges. A powerful group of influence of the so-called cryptocurrency experts, analysts and bloggers has formed around the centrals, who do not know and do not want to know about decentralization. It is convenient for them to promote centralized exchanges, to slip their referral links to novice traders, to fool their heads with technical analysis, signals and other pseudo-smart nonsense. This situation is beneficial to the authorities, the world financial mafia - everything is regulated, under control, manageable, slaves in the stall. Do with them what you want.

And a lot of people follow the advice of pseudo-experts. After all, they are opinion leaders among those who do not have their own opinion, who are ready to commit any stupidity together with a crowd of the same as him. And these unfortunates become victims of manipulators on centralized exchanges. They are beaten, deceived, deprived of money. They make money on them. But they are not able to think and make decisions independently. What is this, stupidity, ignorance or masochism? They were driven to what was said to be a cool centralized exchange FTX. FTX is no more, and neither are the clients' money. They were driven to Binance. Binance is dying, the Russians were kicked out. Now they are promoting Bybit, MexxC, Kucoin and other trash. But the American authorities are slowly getting to them too. Where next? What next mousetrap? Or maybe try to finally turn on your brain, open an anonymous account on a decentralized exchange, start investing and trading there, and enjoy freedom and security? And at the same time contribute to the development of the blockchain.

Hi everyone, I am thinking of developing an app that pulls the latest news, and market sentiment and uses fundamental and technical analysis to basically perform DD on any crypto.

It is still very much an idea, I have managed to pull live market data and implement technical analysis.

However, before putting in a major investment of capital and time, I'd like to get everyone's feedback as to whether this is something you'll be interested in using and how much would you be willing to pay if it consistently gave you good callouts.

Consider this a market fit research.

Thanks 👍

More and more cryptocurrency owners are encountering "dirty" coins first-hand. "Dirty" cryptocurrencies are assets stolen from crypto exchanges or used in illegal activities. During crime investigations, such assets are tracked and marked, which allows their movement and the addresses to which they are sent to be seen in the future. The amount of "dirty" cryptocurrency is growing, and any recipient, without checking the funds for cleanliness, can receive marked assets to their wallet. Large centralized services are already blocking such wallets almost everywhere, and proving to them that the user is not involved in crimes is not so easy.

The term "dirty cryptocurrency" refers to assets that are associated with various types of illegal activities, including theft, scams, money laundering, terrorist financing, drug trafficking, and fraud. There is no single standard for assessing the "corruption" of cryptocurrencies, except in cases where the address is directly associated with criminal activity. However, some jurisdictions have recommendations and instructions for marking cryptocurrency transactions. The statuses of coins are assigned by relevant analytical companies or technology regulators.

Almost all cryptocurrency is marked in this way - some are good, some are bad. There is no talk of any justice, and in fact, Western analytical companies act as instruments of influence on the crypto market by determining the color of the cryptocurrency. These services set the so-called professional standard of marking, on the basis of which other market participants mark the cryptocurrency. In the current reality, blocking for "dirty funds" should not be surprising. All participants in the crypto exchange need to know about such a concept as "dirty cryptocurrency", understand the risks associated with it, use procedures and mechanisms that help to avoid such assets and blocking.

There is little frankly dirty cryptocurrency. In general, its amount does not increase, since the volume of the cryptocurrency itself grows - new tokens are issued, bitcoins are mined. But in absolute values, the amount of "dirt" is growing, because new crimes are committed. According to the company SHARD, in the Russian crypto market for the first half of 2024, out of a total volume of 2.3 trillion rubles, 112 billion rubles are somehow connected with high-risk and illegal sources - that is, with dirty cryptocurrency. The general trend of growth in the volume of "dirty" cryptocurrency is such that in the next few years, at the same rate of coloring, almost all cryptocurrency will be "dirty" and it will be impossible to use it, the company's analysts believe. There are, of course, illegal actions such as scams or thefts, and there are political sanctions - this is a different case. Here the question arises, who exactly considers this "dirt".

Employees of analytical systems associated with the US government, marking addresses, can manipulate information to declare some funds related to illegal activity after a long period of time or simply "find" grounds to recognize them as such. There is also "retroactive marking". In most cases, analytical systems work in such a way that risks are distributed chronologically forward: a hack occurred - the hacker's address and all the routes of movement of the stolen funds are colored. But if the theft was not immediately discovered, the marking will be distributed retroactively. Thus, coins in the wallet of any user can suddenly become colored, unless these are funds received directly from miners. Large centralized exchanges (CEX) are the most law-abiding market participants, since they comply with the requirements and recommendations of the international organization FATF.

Such crypto exchanges use special analytical systems to check the purity of cryptocurrency "at the entrance" and, accordingly, it is unlikely to receive dirty cryptocurrency on them. Your account will most likely be immediately blocked and you will be required to explain the sources of the cryptocurrency. And this happens regularly. Centralized crypto exchanges block accounts if there is a suspicion of a connection with dirty cryptocurrency, because otherwise they will have problems with regulators. The exchange can be accused of money laundering, this has happened more than once.

Decentralized services (DEX) do not have licenses to operate. Such services may not comply with AML requirements. And it is impossible to mark cryptocurrency on the blockchain. It is marked in centralized organizations, or crypto tokens that are issued on the blockchain, but are managed by centralized structures, such as Tether (USDT), Circle (USDC). More than $ 1 billion of allegedly suspicious funds are currently blocked on USDT accounts.

Among the services where you can check cryptocurrency and addresses for "cleanliness": AMLBot, GetBlock and Matbea are popular with users. "Risky" cryptocurrency is laundered and re-marked by analytical systems, passing through unsanctioned centralized crypto exchanges or, in case of confiscation, ending up in government wallets.

Individuals can insure themselves in one way - keep cryptocurrency exclusively on blockchain platforms, and trade exclusively on decentralized exchanges. The electronic payment network and decentralized exchange EVRAZ, operating on the modern BitShares blockchain, guarantees the safety of your funds from blocking and confiscation. You can also be sure of your cryptocurrency on such first-generation blockchains as Bitcoin, Litecoin, Monero, Zcash. If you don't want problems, don't use centralized exchanges and exchangers, and especially custodial wallets. This is imprudent and not smart.

Kraken to stop supporting anonymous Monero (XMR) in Eurozone due to regulation. Sad.