Blockchain
Crypto: Binance sounds the alarm for drifting small projects!
In the competitive and often chaotic world of cryptocurrencies, Binance, the leading digital exchange, is positioning itself as a savior of the industry. Amidst a market rife with speculation and inflated valuations, Binance aims to clean up the crypto ecosystem and restore the image of an industry striving for maturity. The focus is on supporting sustainable and responsible projects, hoping to prevent the excesses that threaten the future of digital currencies.
Binance Takes Action
Binance has launched a significant initiative to counter troubling market trends such as the drop in circulating supply and the rise in fully diluted valuations (FDV). On May 20th, Binance invited small and medium-sized projects to join its listing programs, supporting initiatives with solid fundamentals and genuine community backing.
“Our goal is to improve the blockchain ecosystem by focusing on sustainable business models and dedicated teams, steering clear of artificially inflated market capitalizations,” Binance stated.
This move aligns with a Binance Research report from May 17th, which highlighted a disturbing trend: many token projects are launched with low circulating supplies, leading to temporary price surges during bullish markets. The root cause is a lack of initial liquidity, followed by a flood of new crypto offerings upon unlocking, which eventually destabilizes these price increases.
Tackling Market Manipulation
On May 17th, the crypto researcher Flow revealed a stark reality: 80% of tokens listed on Binance have seen their value drop since their launch. These new tokens often serve as “exit liquidity” for insiders who manipulate prices through restricted initial offerings before selling off, leaving smaller investors at a disadvantage.
In May 2024, nearly $3 billion worth of crypto tokens are set to be unlocked, including significant releases from projects like Sui (SUI) and Pyth Network (PYTH). Early investors are poised to benefit, potentially at the expense of the broader market.
The Road Ahead
According to Binance’s calculations, based on data from Token Unlocks and CoinMarketCap, an estimated $155 billion worth of tokens will be unlocked between 2024 and 2030. This impending token avalanche could challenge the market unless there is a surge in demand and capital flows.
To address these challenges, Binance has tightened its regulatory compliance on listings and is sounding the alarm about the risks posed by the massive release of tokens. The market could face unprecedented selling pressure without an influx of new crypto investors.
Binance is stepping up as a “white knight” in the crypto world, ready to defend small and medium-sized projects against the market’s excesses. By focusing on sustainable business models and responsible industry participants, Binance aims to foster a more robust and mature crypto ecosystem. This proactive stance is crucial as the market braces for potential turbulence from the impending release of a vast number of tokens.
Source: cointribune.com
The post Crypto: Binance sounds the alarm for drifting small projects! appeared first on HIPTHER Alerts.
Blockchain
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Blockchain
EBUEY: In-Depth Review of Multi-Layered Security and Innovative Trading Tools—EBUEY Reviews
2024-DNA Fund, the Financial Institution of the future in high-ticket emerging tech and web3 investments, has announced its acquisition of Coral Capital Holdings LLC, an established investment management firm that has previously managed millions in the DNA founders’ personal funds.
As early-stage investors in established Web3 brands and founders of some of the sector’s most notable projects, DNA and its founders have invested in or founded projects such as Tether, EOS, Mastercoin, Bancor, and Hedera Hashgraph. The acquisition will see the DNA Fund manage an additional AUM of over $50 million, which includes Coral’s high-yielde hedge funds and venture funds focused on DeFi, Al, blockchain, and other emerging technology sectors. Some of Coral’s top-performing investments include Near Protocol and Atmos Labs.
Thomas L. McLaughlin, Coral’s Chief Investment Officer, will continue in his role, managing the funds with a unique focus and strategy aimed at maximizing investor returns.
Regarding the acquisition, Christopher Miglino, CEO of DNA Fund, said. “By bringing Coral Capital under our umbrella, we are not only expanding our investment capabilities but also enhancing our ability to offer unique, high-growth opportunities to our clients. Our combined expertise allows us to navigate the complexities of the digital asset landscape and continue delivering value to our investors.”
Thomas L. McLaughlin, CIO of Coral Capital Holdings, added, “Joining forces with DNA Fund is an exciting new chapter for Coral. Our shared vision for leveraging technology to drive financial growth is perfectly aligned. Together, we are set to redefine what’s possible in digital asset investments and deliver superior results for our investors.”
Since its inception in 2021, Coral has delivered consistent returns with innovative strategies, delivering high multiples on the benchmark of the overall market cap of digital assets. Coral’s Flagship fund, initially started as a market-neutral vehicle, was rebranded in 2023 as a discretionary liquid token, surviving a number of high-volatility events, including FTX and Terra.
With a 61.6% return (net of fees) and a maximum annual drawdown of only 11.6% in FY 2022. these funds have outperformed the broader digital asset market. Over a similar period, Bitcoin returned 36.7%.
Through this acquisition, DNA Fund also aims to capitalize on the growing interest from institutional investors and expand into several new verticals over the coming year, including a Bitcoin & Ether Yield Fund, as well as more speculative funds focused on Al, memecoins and microcaps.
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