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Removing These Pairs
Binance, the world’s largest crypto exchange, periodically reviews all pairs on its platform to protect users and maintain a high-quality trading market. As such, it delists some due to various factors, such as poor liquidity and trading volume.
Based on its latest evaluation, Binance will terminate the following spot trading pairs: PEPE/TUSD, DCR/BTC, and ZEN/ETH. The effort will come into effect on December 13.
“The delisting of a spot trading pair does not affect the availability of the tokens on Binance Spot. Users can still trade the spot trading pair’s base and quote assets on other trading pair(s) that are available on Binance,” the company clarified.
A delisting spree launched by a major exchange like Binance usually has a negative effect on the underlying cryptocurrencies due to reduced liquidity, reputational damage, and other reasons. The frog-themed meme coin Pepe (PEPE), for example, is down 7% on a daily scale. DCR has dipped by 4%, while somewhat surprisingly, ZEN is up 2%.
The Opposite Effect
On the other hand, when cryptocurrencies are added to Binance, their prices are often positively affected due to increased accessibility, a boost in market confidence, and other factors.
In November, the firm introduced PONKE/USDT perpetual contracts, which allow up to 75x leverage. The price of the Solana-based meme coin PONKE soared by 15% minutes after the disclosure.
Simon’s Cat (CAT) experienced an even more significant rally in October when Binance launched 1000CATUSDT perpetual contracts on its futures program.
Conclusion
In conclusion, the delisting of PEPE and other altcoins by Binance may have a negative impact on their prices, while the addition of new coins can have a positive impact. It is essential for investors to stay informed about such developments and adjust their portfolios accordingly.
FAQs
Q: What is the reason for Binance’s delisting of certain pairs?
A: Binance delists certain pairs due to poor liquidity and trading volume, among other factors.
Q: How will the delisting of a spot trading pair affect users?
A: The delisting of a spot trading pair will not affect the availability of the tokens on Binance Spot. Users can still trade the spot trading pair’s base and quote assets on other trading pair(s) available on Binance.
Q: What is the impact of Binance’s delisting on the affected coins?
A: The delisting can have a negative impact on the affected coins, resulting in reduced liquidity, reputational damage, and other negative effects.
Q: Can I still trade the affected coins after delisting?
A: Yes, you can still trade the affected coins on other trading platforms or on other pairs available on Binance.
