The Binance Listing Premium

The Binance Listing Premium

Binance is the premier global crypto exchange, with over $1T in monthly spot trading volumes and over 35% market share amongst centralized exchanges. Listing on Binance can come with higher trading volumes, liquidity, exposure to investors, and frequently, a higher market capitalization. As such, a token listing on the exchange remains a coveted accomplishment for any given project.

This report examines the historical repricing that assets have exhibited on a Binance listing. To constrain selection bias, the study focuses exclusively on the last 100 assets covered by Blockworks Research. The repricings are a measurement of the change in an asset’s market price from t-1 to t0, t+7, and t+30, with t0 being the end of the first full 24 hours of trading on Binance.

In aggregate, we see that both a spot listing and futures listing can support favorable returns for a token. Moreover, spot listings tend to support higher returns on a t0, t+7, and t+30 basis, when compared to a futures listing, suggesting that a spot listing is more valuable for a token’s market price than a futures listing.

Interestingly, there is a decay in the probability of positive returns with time from the Binance spot listing. On the day of listing, 88% of the events exhibit positive returns, while this decreases to 80% and 69% at t+7 and t+30, respectively.