June 29, 2022

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Most New Crypto Is Underwater Relative to Bitcoin Within a Year

2 min read
New Crypto

Around 80% of newly created cryptocurrencies are in the red and their annual returns are nearly zero compared to Bitcoin within the first year, as per a Jump Crypto analysis.

The majority of freshly created cryptocurrencies are in the red and their annual returns are almost zero in comparison to Bitcoin within the first year, as per the Jump Crypto analysis.

Although there are some notable exceptions the majority of the new coins performed poorly within the first month of their existence, the brand that is known as a public face for crypto Jump Trading Group found, after studying 3,759 tokens, not including stable coins that appeared in CoinGecko along with CoinMarketCap from the beginning of 2013 to the end of 2013. Jump monitored the return of the beginning of the token until the year 2021’s end.

Bitcoin was valued at about $100 in 2013. The middle part of 2013 hit an all-time high of nearly 69,000 dollars in November. The most popular cryptocurrency in terms of market value, it was trading at $39,500 on the day of trading.

The review appears to have an upside, but it doesn’t matter whether the token was bought within a bear or bull market or if it did well before buying which is an indication of a well-functioning market, Jump found.

“The market for new tokens looks surprisingly efficient, in that returns are neither systematic nor predictable,” Jump stated in his report.

Jump performed the analysis using the perspective of the “mainstream” Bitcoin investor, who, according to them, measures the return they get from the new tokens in Bitcoin-based terms. The approach takes into account the general market sentiment for Bitcoin as well as other cryptocurrencies, Jump said.

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