dailyhodl.com
A widely followed crypto trader is issuing a warning on two artificial intelligence (AI)-based altcoins, saying that history shows a 50% drop would be the best-case scenario for them.
In a new thread on the social media platform X, pseudonymous crypto analyst Altcoin Sherpa tells his 237,500 followers on the social media platform X that AI-focused projects ai16z (AI16z) and Zerebro (ZEREBRO) being listed on Binance futures is likely a sell-on-news event.
According to Sherpa, recent history shows that when assets are listed on Binance futures, they tend to see sharp decreases in price. The trader cites memecoins Fartcoin (FARTCOIN), Just a chill guy (CHILLGUY), Moo Deng (MOODENG), Goatseus Maximus (GOAT) and Peanut the Squirrel (PNUT) as examples.
“I own both ai16z and Zerebro and they’ll be listed on Binance futures. Recent history shows that this is NOT a bullish event and you can generally expect anywhere from -50% retrace (FARTCOIN) as the best-case scenario or much worse (GOAT, Chillguy, Pnut, Moodeng).”
The trader’s chart shows that Fartcoin saw a 48% decrease in its Solana pair (FARTCOIN/SOL) after it was listed on Binance futures. However, the chart also shows the asset rebounded and hit a new all-time high afterward.
Earlier this week, Binance announced that it would be expanding its suite of futures products, including offerings for Zerebro and AI16z.
ZEREBRO and AI16z are trading for $0.607 and $2.10 at time of writing, respectively. On November 3rd, they were moving for just $0.0058 and $0.109, representing increases of over 10,000% and 19,000%.
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