The "Binance Effect" opens up huge opportunities for speculation
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Token prices jumped 73% in the first 30 days after they were listed on the Binance crypto exchange, according to an analysis by crypto investor Ren & Heinrich.
The report, which tracked 26 coins over 18 months, showed a 41% rise one day after listing on the world's largest crypto exchange by market volume and a 24% rise on the third day. The findings of Ren and Heinrich are indicative of a “Binance effect” that benefits the tokens, at least in the short term.
Despite the immediate price spike, Ren & Heinrich said the positive momentum was "relatively short-lived." After about two weeks, almost half of all analyzed cryptocurrencies lost their profits. The analysis also noted that coins listed in the last bull market performed better than coins listed in the current bear market.
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