Toncoin Surges 10% Following Binance Listing Despite Market Concerns

By: Eliza Bennet

Binance, the leading crypto exchange by trading volume, has announced the listing of Toncoin (TON) as of August 8th. This listing will introduce several new spot trading pairs for Toncoin, with trading beginning at 10:00 UTC. Withdrawals will be enabled the following day, August 9th, at 10:00 UTC.

Interestingly, this listing came with a 'seed tag,' which flags the asset as one that might show significant volatility and comes with higher risks. Binance itself has cautioned,

'TON is a new listed token that poses a higher than normal risk and will likely be subject to high price volatility. Users must exercise sufficient risk management and DYOR (do your own research) to fully understand the project before opting to trade the token.'

Despite these warnings, the price of Toncoin surged by 10%, hitting $6.17 shortly after the announcement. This marks a positive yet cautious start for the cryptocurrency in its new listing journey.

Implications of Binance 'Curse'

The Toncoin blockchain has experienced substantive growth over the past year, thanks largely to its integration with the popular messaging app Telegram. This collaboration has propelled Toncoin into the top ten cryptocurrencies by market capitalization, even surpassing well-established blockchain networks like Avalanche, Dogecoin, and Cardano.

However, there are lingering concerns regarding the so-called Binance 'curse.' According to Coin98 Analytics, most tokens listed on Binance in 2024 have struggled to perform well. Research indicates that nearly all of the 30 tokens listed this year are facing declines.

A researcher known as Flow has supported these findings, indicating that Binance's market dominance and liquidity often attract insiders looking to liquidate their holdings. He pointed out that new tokens on Binance often lose their upside potential quickly, becoming mere exit liquidity for early investors.

'More often than not, tokens launching on Binance are not investment vehicles anymore – all their upside potential is already taken away. Instead, they represent exit liquidity for insiders who capitalize on retail lack of access to quality early investment opportunities.'

The term 'exit liquidity' refers to the availability of sufficient buyers or liquidity to allow large stakeholders to exit their positions without causing huge price drops.

Despite these concerns, supporters of Toncoin believe the new listing on Binance will be advantageous. They argue that the increased visibility and credibility garnered from the Binance listing will attract more retail investors to the project, ultimately benefiting Toncoin in the long run. Only time will tell if these hopes will come to fruition or if Toncoin will succumb to the 'curse' faced by many new listings on Binance.