EXCHANGE LISTINGS: An observation on how participants behave during this event (Republic Protocol)

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wilhelm2
Dec 8, 2018

Today, let's take a look at how the difference forces in the network behave when an exchange listing is announced for a token.


Binance listing Announcement

Binance announces listing of Republic Protocol (REN) on Thursday, 6 December at 3:40AM (CET)

listing announcement


Signals : large token movement into exchanges

40 minutes later at 4:20AM (CET), signals went off due to large amount of REN tokens have begun their move to exchanges. Through the day, more signals appeared with increasing amount of REN tokens moving to exchanges.

1st Signal
Final signal for the day

By the last signal of the day, we observed a total of 19%++ (118M tokens) of total circulating supply that has entered exchanges. Approx. USD value of tokens moved is $2,622,214 USD. This may suggest there might be a significant amount of sell pressure awaiting the speculators.


Long term holder movement

It is also interesting to note that the Token Age consumed (Days Destroyed) spiked as well, indicating that long term holders have started to move their tokens during this event.

Spike in Token Age consumed


So let’s take a look at the token circulation to reveal more about which group of holders moved.

Token circulation

By comparing the difference in token circulation between 5th December and 6th December, we can observe how much tokens were moved by the following groups:

6m-12m : 60,948,220 tokens moved

3m - 6m : 10,029,434 tokens moved

1m - 3m : 13,564,306 tokens moved

1w - 1m : 19,133,591 tokens moved


Social trends: Republic protocol mentions

Meanwhile, let’s see how the crowd is behaving. We can observe the crowd began talking intensively about REN or Republic following the announcement.

Increase in Republic protocol mentions


This increase in crowd participation can be observed on-chain as well by looking at the increase in Daily Active Addresses (DAA). This may suggest that more speculators are joining in event and price spikes with it.

Daily active address spike and decline

However, one day after the listing, DAA has fallen drastically (from 1,000++ to 160) and price too retraced.


Conclusion

The bear market has been tough for everyone in the space and liquidity continues to be an issue for many tokens out there. Large/long term holders may find themselves without means to exit a position and events such as a exchange listing may provide an opportunity to do so.

On the other hand, speculators (the crowd) found themselves a new asset to trade on Binance but may not necessarily know the amount of sell pressure ahead for them. The real question going forward is whether there will be enough demand eventually else price will just fizzle out.

It'll be interesting to see how the price will be in the following weeks and what the participants are doing.

REN
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wilhelm2
Dec 8, 2018

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