Traders Anticipate Sharp Declines for AI Coins

You can also read this news on BH NEWS: Traders Anticipate Sharp Declines for AI Coins

A trader closely tracking the cryptocurrency sector has raised alarms about two altcoins driven by artificial intelligence. The trader, known as Altcoin Sherpa, suggests that historical patterns indicate these coins could see a drastic depreciation of up to 50% under optimal conditions.

How Could Binance Futures Affect Prices?

Altcoin Sherpa expressed apprehensions that the addition of AI16z and Zerebro to Binance futures might lead to a typical “sell-on-news” situation. He pointed out a trend where price drops often follow the introduction of new assets on the Binance futures platform.

He provided examples of previous altcoins, such as FARTCOIN and GOAT, which underwent significant price falls post-listing. These altcoins experienced declines of nearly 50% after being added to Binance futures.

What Is Sherpa’s Position on These Altcoins?

Despite his concerns, Altcoin Sherpa revealed that he holds investments in AI16z and Zerebro, expecting their listing on Binance futures. However, he remains cautious, indicating that this may not lead to favorable outcomes.

• Historically, significant price drops often follow the Binance futures listing.
• AI16z and Zerebro recently surged over 10,000% and 19,000%, respectively.
• Market volatility post-listing could present considerable risks for traders.

The fluctuating market conditions following Binance futures listings necessitate a thorough analysis by traders. Following the impressive gains of AI-focused altcoins, the sustainability of their value remains uncertain, warranting close examination of the data surrounding these assets.

Continue Reading: Traders Anticipate Sharp Declines for AI Coins