The era of speculative ICOs and meme tokens appears to be waning as investors increasingly scrutinize tokenomics, team backgrounds, and market-making activities. Recent analysis compared the performance of 10 newly listed Alpha tokens and spot tokens over 24-hour and 7-day periods, alongside Rootdata's transparency index.
Findings indicate that both Alpha and spot tokens have underperformed recently, with only 30% showing gains over 7 days. However, spot tokens demonstrated stronger resilience, particularly in 24-hour rebounds. The average transparency score for Alpha tokens was 62.7%, compared to 74.7% for spot tokens, with the highest at 91%. This suggests that higher transparency correlates with better performance, aligning with the notion that spot tokens have higher entry barriers.
The emphasis on transparency is growing as investors become more discerning, making it harder for projects to exploit information asymmetries. This shift is seen as a positive development, encouraging the emergence of valuable tokens while discouraging malpractice in the market.
Transparency in Token Information Gains Importance as Market Matures
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