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A trader actively monitoring the cryptocurrency market has issued a warning regarding two artificial intelligence-based altcoins. The trader, known as Altcoin Sherpa, based on historical data, indicated that even in the best-case scenario, these altcoins could experience a 50% loss in value.
Impact of Binance Futures
Altcoin Sherpa expressed concerns that the inclusion of AI16z and Zerebro in Binance futures could result in a “sell-on-news” scenario. He noted that significant price drops have historically followed the listing of assets on Binance futures.
Sherpa pointed to examples such as FARTCOIN, CHILLGUY, MOODENG, GOAT, and PNUT, which faced notable declines after being listed on Binance futures. He highlighted that these assets have incurred pullbacks of up to 50% following their listings.
Trader’s Own Position
Altcoin Sherpa stated that he holds positions in AI16z and Zerebro, anticipating these assets will be listed on Binance futures. However, he emphasized that this development may not signal a positive outcome and that price declines could occur.
“I own AI16z and Zerebro, and they will be listed on Binance futures. Historically, this has not been a positive development, and you can expect a pullback of around 50% at best,” said Altcoin Sherpa.
Sherpa’s chart illustrated a 48% decline in Fartcoin’s value against Solana 
$178 following its listing on Binance futures. However, the chart also revealed that the asset managed to recover and reach a new record level.
Earlier this week, Binance announced the expansion of its futures product range, offering perpetual contracts for Zerebro and AI16z. This decision could impact the market in various ways.
Currently, ZEREBRO and AI16z are trading at $0.607 and $2.10, respectively. On November 3, these values were $0.0058 and $0.109, indicating increases of over 10,000% and 19,000%.
The price volatility following Binance futures listings presents a situation that requires careful evaluation by traders. Particularly for altcoins that have surged significantly, market fluctuations can pose substantial risks.
Recent trends have raised questions about the sustainability and future performance of AI-focused altcoins, following their significant value gains. It is crucial for traders to scrutinize the available data regarding such assets.
