Investing in last year's new listings on Upbit, Bithumb resulted in 70% loss: Report

Investing in cryptocurrencies newly listed last year on Upbit, Bithumb, and Binance has resulted in an average loss of around 70% to date, according to a recent report by global crypto research firm Four Pillars. The report found that losses were nearly identical across platforms, with Upbit at -69.5%, Bithumb at -69.1%, and Binance at -71.7%. On average, buying a newly listed cryptocurrency on its first day on any of these exchanges resulted in a 70% loss of the initial investment. Only two such assets on Upbit and eight on Bithumb recorded a profit. Four Pillars noted that the performance of new listings on South Korean exchanges was structurally no different from that on Binance, despite varying strategies and regulations. "Buying a newly listed cryptocurrency on its first day was a disadvantageous strategy on any exchange," the report stated, adding that this pattern is not because exchanges select poor-quality assets but is due to the concentrated demand created by the listing event itself.