I've noticed a trend on Binance Launchpool that's got me scratching my head. Most coins or tokens launched there seem to experience a significant price drop shortly after. See below the last 90 days performance of some of these tokens:

There's always an exception - like Notcoin for example, but the majority follow this pattern. It makes me wonder if there's something more to it than just bad luck.

One possible explanation is the combination of high Fully Diluted Valuation (FDV) and low circulating supply. Many of these tokens have a huge potential market cap (FDV) but only a tiny fraction of the tokens are actually available for trading at the start. This creates a situation where even a small increase in supply can lead to a big price drop.

Often, Binance Labs acts like a Venture Capitalist (VC), investing early in these projects. This usually comes with vesting schedules, which means the project's team and early investors have their tokens locked up for a certain period. As these tokens gradually become unlocked and enter the circulating supply, it creates selling pressure, further driving the price down.

So, you might be wondering, what's the point of participating in Binance Launchpool if the prices are likely to tank? Well, you could sell your earned coins immediately, but that's not always the best strategy. It's crucial to do your research, understand the project's fundamentals, and consider the long-term potential.

Remember, this is just my personal observation, not financial advice. It's always important to make your own informed decisions and invest responsibly. Launchpool can be a great opportunity, but it's also essential to be aware of the risks involved.