Buying a coin at listing is one of the most emotionally appealing, yet technically risky actions in trading. Most novices perceive listing as a 'guaranteed growth', but the reality is quite different. And this is where what professional traders call the 'Binance effect' comes into play — and it is not at all what it seems at first glance.
💣 What is the 'Binance effect' really?
On the surface, it looks like:
🔼 'The coin was listed → the price skyrocketed → those who bought got rich.'
But deeper it means:
💼 'Insiders, funds, market makers, private early investors — all have allocations to the public listing and wait for the moment to dump their positions for multiple profits in the first minutes/hours after trading opens.'
🚩 Reasons why you shouldn't buy at listing:
💰 Already 'bought out' before you:
The coin has already gone through several rounds — seed, private, strategic. Its cost for participants is at $0.01 or below, while you are being offered it at $0.30+ at the opening. They are already x30 in profit. You are their 'liquid exit'.
🧨 Manipulative pump:
At listing, an artificial FOMO situation is often created. Market makers drive the initial candle up by 200-300%, then an immediate dump occurs — a decrease of 50-80%. This is called an IPO-style bull trap.
⏳ Risk of lock/vesting:
In many coins, only 5-10% of the total issuance is in circulation. This means that large batches (vesting unlocks) will start to be released in the coming months, which will pressure the price.
📉 Historical statistics:
If you look at the last 100 coins listed on Binance, OKX, KuCoin — only 5-7% showed sustained growth after the first 48 hours. The rest fell below the opening price — sometimes by 3-10 times.
😨 Psychological pressure:
Buying at listing is a game against algorithms, bots, and experienced speculators. A novice has no chance to enter and exit in time. After a pump, they usually become a 'candle holder'.
📌 Analogy for understanding:
Buying at listing is like being the last to arrive at a party when everyone has already eaten, drunk, and is looking for someone to rip off on the way out.
✅ When and how to buy correctly?
Watch the first 24-72 hours. Wait for the market to 'exhale'.
Determine the support level after the dump — this is often where the real price of interest forms.
Look at the tokenomics: If unlocking is in 1-3 months, this is a window for trading.
Analyze the fundamentals: Does the coin have a real case, partners, ecosystem, or is it just another 'meme coin'?
🔒 Conclusion:
Buying at listing is not investing, but a gamble.
Veteran traders do not buy in a hype — they sell.
Only the patient get the best entry points when everyone else is already in panic.