New Coin Listings Plummet? Deep Dive into 70% Average First-Day Losses on Top 3 Exchanges

In March 2025, an authoritative research report released in Seoul, South Korea, revealed a concerning trend for investors: new crypto assets listed on the three major exchanges, Upbit, Bithumb, and Binance, experienced an average price decline of nearly 70% on their first day of trading. The study, conducted by global crypto data analytics firm Four Pillars, covered a total of 127 newly listed projects throughout 2024, with data tracked through February 2025, making the results highly relevant. Specifically, the average return for projects listed on Upbit was -69.5%, while Bithumb saw -69.1%. Binance, the world's largest exchange by trading volume, recorded the steepest drop at -71.7%. Out of all 127 cases, only a handful of projects generated profits for early buyers – just 2 on Upbit and 8 on Bithumb, with the rest experiencing prolonged price declines.

The analysis points out that this phenomenon is not due to isolated project failures, but rather a systemic market behavior. New coin listings often trigger concentrated hype on social media and trading platforms, attracting a large influx of retail investors chasing high prices. Simultaneously, project teams, early investors, and market makers capitalize on this peak in sentiment to quickly cash out, causing prices to peak within 48 hours and then rapidly decline. Due to the generally low liquidity of new coins, any release of selling pressure can easily trigger significant price volatility, leaving latecomers deeply underwater. It is worth noting that despite differences in regulatory environments and listing standards between Korean and global exchanges, the price trends of new coin listings are highly consistent. This suggests that the root cause lies not in the exchanges' screening mechanisms, but in the irrational trading patterns induced by the “listing effect” itself. Market experts caution that new coin listings are not investment opportunities, but rather high-risk liquidity games. Rational investors should avoid blindly participating in first-day trading and instead focus on project fundamentals, team backgrounds, and long-term on-chain data performance to mitigate systemic risks in a highly volatile market.