Cryptocurrency trading can be a volatile and risky endeavor, especially when it comes to new altcoins and tokens. A popular crypto trader known as Altcoin Sherpa is cautioning investors about two artificial intelligence (AI)-based altcoins, ai16z (AI16z) and Zerebro (ZEREBRO), which are set to be listed on Binance futures. With a history of similar listings resulting in significant price drops, Sherpa believes that a 50% decrease would be the best-case scenario for these assets.
Sherpa, who has a sizable following on social media platform X, pointed out that past instances of assets being listed on Binance futures have led to sharp declines in their value. Citing examples such as Fartcoin (FARTCOIN), Just a chill guy (CHILLGUY), Moo Deng (MOODENG), Goatseus Maximus (GOAT), and Peanut the Squirrel (PNUT), Sherpa warns that the listing of ai16z and Zerebro is likely to trigger a sell-off among investors.
A chart shared by the trader illustrates the case of Fartcoin, which experienced a 48% drop in its Solana pair (FARTCOIN/SOL) following its listing on Binance futures. However, the asset managed to bounce back and reach a new all-time high afterward. This pattern suggests that while the initial listing may lead to a price decline, there is potential for recovery and further growth in the long run.
Binance recently announced the expansion of its futures products, including offerings for Zerebro and AI16z. These tokens are currently trading at $0.607 and $2.10, respectively, marking significant increases from their earlier values of $0.0058 and $0.109. Despite the impressive gains, Sherpa’s warning highlights the potential risks associated with investing in these AI-focused projects, especially in the wake of their listing on Binance futures.
As the cryptocurrency market continues to evolve and attract new investors, it is essential to stay informed and cautious when considering investment opportunities. Altcoin Sherpa’s insights serve as a reminder to approach new altcoins with caution and to carefully assess the risks involved. With careful research and risk management, investors can navigate the volatile crypto market and make informed decisions about their investment strategies.