Pre-launch volatility underscores the critical role of liquidity in stabilizing markets, according to the report.
Pre-launch token trading is a growing trend among cryptocurrency investors, despite introducing up to 20 times the price volatility of post-token launch trading.
Before their token generation event (TGE), cryptocurrencies like Wormhole’s (W) token saw over 3,000% volatility compared to around 100% one week after the coin was launched, as measured by the historical volatility based on the seven-day standard deviation returns, based on the volume-weighted-average-price (VWAP).
Similarly, the Jupiter (JUP) token's volatility rose to around 2,800% pre-launch, falling to around 150% one week after launch, according to a Keyrock report shared with Cointelegraph.
