Dear colleagues,
I have always aimed to be objective in what I say and write, and now after several months of observation and analysis, I am ready to debunk yet another myth that you, as consumers and investors, have probably heard, but somehow has slipped away.
In the crypto world, listing on Binance was traditionally considered a sure path to a price spike – the so-called 'Binance effect'. But in recent months, we are observing a reverse phenomenon that we can call the 'Binance defect'. The last five currencies added to the platform, including the #TRUMP token (74%) and #MUBARAK (75%), lost value shortly after listing – a phenomenon that raises questions about the changing dynamics of the market. I am not saying that Binance and other platforms are to blame for the decline in asset prices, but rather that the difference in public sentiment, distrust, and temporary tokenomics leads to such 'defects'.
Take, for example, TRUMP, the official meme token of Donald Trump, listed on Binance on January 19, 2025. After an initial spike to $73, it quickly fell by over 75%, reaching around $19 by early February (according to data from CoinGecko). Mubarak changed its price from $0.1489 to $0.059. A similar pattern is observed with other new listings – instead of the expected rise, investors are greeted with sell-offs and declines. What is happening?
One reason is market saturation. Binance adds new tokens at a high frequency, but not all of them have enough fundamental value or community support to withstand the hype. Psychology also plays a role – traders buy before the listing in anticipation of profits, and then sell en masse, creating a 'pump and dump' effect. In the case of TRUMP, for example, the initial enthusiasm was overshadowed by macroeconomic factors such as Trump's tariffs announced in February 2025, which hit risky assets.
The data supports this observation. According to an analysis by Ren & Heinrich from 2023, the 'Binance effect' brought an average increase of 73% within 30 days after listing. However, in 2025, the latest listings show a reverse trend – an average decline of 30–50% in the same period. This may also be due to the changing trust in Binance, especially after regulatory challenges and reduced media weight, as noted by FXStreet on March 5, 2025.
The 'Binance defect' is a warning for investors – listing no longer guarantees success. In a world where emotions and cultural factors drive the market more than ever, new players need to look beyond the exchange and seek real value. Otherwise, the risk of a 'defect' remains high.