Since its launch in March, the native token of the L2 cryptocurrency derivatives platform Aevo (AEVO) has plunged from a high of $3.7 to $0.43, a nearly 90% drop.
According to CoinGecko, the token’s market capitalization has tumbled from a peak of $900 million to $373 million.
The asset is listed on nearly all major centralized cryptocurrency exchanges, including Binance, OKX, Gate.io, Bybit, and MEXC.
The sharp decline in the token’s price caught the attention of OKX CEO Minxing Xu, known online as Star, who questioned the purpose of CEX in listing tokens.
加密货币交易所List Token的初衷是什么？一些Token项目方在List到交易所以后，唯一做的事情就是释放、减持和收割用户。交易所不应该成为这类项目方的帮凶, OKX在List方面做的也不好。由于暂时没有List和减持方面的监管，如何保护这个市场？这是一件值得全行业反思的事情。 https://t.co/GO2f57LyNX
— Star (@star_okx) August 1, 2024
“After some projects get listed on exchanges, the only thing they do is release [tokens], reduce reserves, and harm users,” he wrote.
In his view, trading platforms should not become “accomplices” to such projects, which is why OKX “does not excel in listings”:
“Since there is currently no oversight on the listing and delisting of assets, how can we protect this market? This is something the entire industry should reflect on.”
AEVO is not the only token to show negative performance post-launch. For instance, the February-launched token of the L2 solution StarkNet (STRK) fell from a peak of $4.4 to $0.44, a 90% drop.
Notably, the ZKX project, built on the protocol, was shut down due to the token’s issues. The team also cited “low community engagement.”
Back in May, a researcher known as flow observed that over the past six months, 80% of tokens from new listings on Binance had lost value compared to their trading debut day.