AI tokens plunge after Binance futures listings
AI tokens AI16Z and VVV saw sharp declines after listing on Binance’s futures platform.
AI16Z has fallen sevenfold since its 2 January listing. VVV was added on 29 January at $10.6; it now trades at roughly half that. At one point it changed hands around $2.3.
Ai16z oversees the Eliza framework—an open-source platform for building AI agents. Recently, the project changed its name to ElizaOS. The token ticker remained the same.
VVV is the token of a privacy-focused AI platform Venice from Erik Voorhees.
“Binance futures listings have become a death trap for many popular tokens of late, from AI16Z to VINE. Rather than facilitating healthy price discovery, these listings create an easy way for traders to short assets aggressively, dumping them on spot,” commented Arete Capital founding partner Ilya Pavelyev.
Futures allow trading with relatively little capital thanks to leverage. Whereas spot prices reflect organic demand, derivatives give large players the ability to exert significant influence on the market, the expert stressed.
“Market makers who are supposed to provide stability often step back after listing, allowing prices to crash,” he added.
Another stark example was Berachain: the BERA coin lost 41.6% in under 100 minutes of trading on Binance Futures.
Another Binance classic that will go into history books
-41.6% on BERA/USD in under 100 minutes
new world record? pic.twitter.com/RJh2edQt1q
— RunnerXBT (@RunnerXBT) February 6, 2025
Pavelyev pointed to a broader problem tied to the current structure of exchange listings. Tokens are often subjected to aggressive strategies that are not designed for long-term sustainability.
“As with traditional assets, crypto derivatives facilitate price discovery and provide liquidity that helps markets develop. A less liquid market is relatively more volatile. Derivatives allow participants to express views in both directions, and a two-sided market reduces volatility and improves pricing. Demand for liquidity increases as the crypto industry grows and matures. The fact that the market goes through periodic cycles underscores the need for more hedging tools and better derivative products,” a Binance representative told ForkLog.
Trader Vladimir Cohen explained the post-listing price drops on Binance by the actions of market makers, long liquidations and moves “against the crowd”.
Negative growth
AI tokens have fallen by 34–83% over the past 30 days, CoinGecko data show.
Leading platforms such as AI Rig Complex (ARC), ElizaOS (AI16Z) and Virtuals (VIRTUAL) have lost 75%–90% of market capitalisation since January.
AI-agent tokens, which led gains in the fourth quarter of 2024, have also posted the steepest declines among crypto sectors.
AI Tokens Are Down 90% from ATH – Is This the End?
Looking at the charts of ai16z, $arc, and even Fartcoin, it’s clear that the trend has been downward, and many believe these tokens may never recover to previous levels. But that couldn’t be further from the truth.
When it… pic.twitter.com/MWOXChrIeX
— ElonMoney (@0xelonmoney) February 6, 2025
“If you look at the charts of AI16Z, ATC and even FARTCOIN, it becomes clear the trend has been downward. Many believe these tokens may never recover to previous levels,” noted the crypto trader under the nickname ElonMoney.
He stressed that frameworks such as ElizaOS and Rig have strong teams that keep improving the product. For them, nothing has changed except price. As bitcoin recovers and liquidity returns, AI-project tokens will revisit their all-time highs. The same applies to FARTCOIN.
Trump blamed for the slide
On January 18, Donald Trump launched his own memecoin, TRUMP, whose FDV grew to about $75bn in roughly a day.
Within the community, many argue that such a large launch and the ensuing hype diverted liquidity from other tokens, including memecoins and AI agents.
AI Narrative performance and thoughts on what to do next:#VIRTUAL down 40% this month#FARTCOIN down 30% this week#AI16z down 65% this month#AIXBT down 35% this week$ARC down 30% this week#GRIFFAIN down 60% this week#GOAT down 8% from ATH#ZEREBRO down 85% this month$MOBY…
— Crypto Stream (@CryptoStreamHub) January 31, 2025
“The reason for the sharp sell-off is clearly narrative-driven — liquidity is leaving,” said the trader under the nickname Crypto Stream.
He emphasised that even if a project is genuinely strong and keeps building, its token will not necessarily reclaim prior highs. The sell-off shows previous valuations were detached from fundamentals. What the sector needs for growth is not incremental improvements but major, visible innovation and a return of liquidity.
He does not recommend trying to “buy AI agents at the bottom” — the odds of timing the lowest entry are poor. The risk is not worth the potential reward; waiting is the better choice, he added.
Earlier, Sygnum Bank called AI-agent tokens a new trend for 2025, but for now they remain mostly speculative.
In February, Binance analysed the rising popularity of memecoins and AI agents and shared its expectations regarding their prospects.
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