As a seasoned researcher with extensive experience in the crypto market, I find the concept of “PvP” as articulated by Arthur Hayes intriguing. The idea that success in this space often comes at someone else’s expense resonates deeply, given the competitive nature of the crypto world.
Arthur Hayes, a co-founder and former CEO of the BitMEX cryptocurrency exchange, recently talked about the idea of PvP, commonly known as “player versus player” in the crypto world. He pointed out that this term is often used by traders of so-called “Shitcoins” to describe the current market trend. In the context of PvP, one player’s success comes at the cost of another player’s loss.
New Crypto Projects Struggle to Survive Post-Launch
From a different angle, American investors point out the boom in the cryptocurrency market and its impact on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). These leading crypto projects are showing positive outcomes, but many tokens that debuted this year are struggling to survive among retail investors. As Hayes puts it, “the success story is not shared by Venture Capital (VC) firms.
Additionally, Arthur Hayes noted that numerous recently launched cryptocurrency projects boast substantial Full Diluted Values (FDV), yet have a relatively small circulating supply. Consequently, these token prices tend to plummet shortly following their release.
Apart from traders, those who launch tokens can also embody the player-vs-player dynamic. In order to grasp why crypto initiatives strive to gain approval from traders, researchers from Maelstrom aimed to address two queries:
Is it worth paying listing fees to exchanges so your token has a better chance of pumping?
Are projects launching at valuations that are too expensive?
The research encompassed 103 projects, all listed in 2024 on significant cryptocurrency trading platforms. Typically, these projects aim to find Centralized Exchanges (CEXs) willing to list their token, hoping it will increase prices. However, Hayes posits that such listings are not always necessary. Instead, he strongly suggests focusing on developing a valuable product or service with an increasing customer base as the key ingredient for a thriving Web3 project.
Arthur Hayes on Binance Listing
Initially, he provided a table illustrating the performance of many tokens across platforms such as Binance. However, over time, it became apparent that the majority of these tokens did not meet their anticipated results.
Unluckily, certain cryptocurrency initiatives often shell out substantial listing fees to exchanges, but these transactions might prove fruitless in the long run. However, the co-founder of BitMex considers that there’s more value in something other than being listed on Binance.
According to the data from the table, it appears that the tokens listed on Binance may not necessarily outperform those on other exchanges. In fact, Hayes pointed out that these tokens have generally declined. Consequently, Hayes believes that getting listed on Binance does not automatically ensure a token’s growth.
Arthur Hayes clarified, “In other words, having your token initially listed exclusively on Binance isn’t necessarily beneficial.” However, he added, “If Binance decides to list your token as a secondary listing due to the momentum and active community of your project at no cost, then that is certainly advantageous.
Among the newly added cryptocurrencies on Binance, you’ll find Hamster Kombat’s native token, HMSTR. Its airdrop became active on September 26 and was swiftly listed on Binance, OKX, Bitget, KuCoin, Bybit, Gate.io, MEXC, and Bitfinex. Generally, these listings are thought to spur growth. However, in the case of HMSTR, despite these listings, its market value has experienced a substantial decline instead.
At the time of this writing, HMSTR traded at $0.004532 from a listing price of $0.013.
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2024-10-08 18:27