Crypto Analyst Predicts Major Price Declines for New Tokens Upon Listing

Crypto analyst AB Kuai Dong has predicted significant price declines for newly launched tokens upon their exchange listings, advising project owners to brace for potential drops exceeding 80%. Key points include:

New token listings are often met with sell-offs due to initial hype and liquidity constraints.
Many projects debut at inflated market values to avoid backlash from early backers.
Platforms like Bybit prioritize projects with high annualized returns for new coin offerings.
Smaller projects under $100 million in valuation face less pressure but are not immune to market volatility.

Institutional Shorting

Dong noted that both retail and institutional investors are shorting newly listed currencies to hedge against losses. This trend may lead to a cleansing of the market through summer, signaling potential recovery by late 2025 or 2026. He warned many venture capital funds could dissolve due to poor returns, impacting salaries and employment in the sector.

Crypto Market Sentiment

Bitcoin is currently trading around $97,600. The crypto market capitalization has declined by 15% over the past 20 days, now at $3.19 trillion. The Crypto Fear and Greed Index indicates fear among investors, with predictions of bearish trends in the coming months.