TL;DR
- Binance’s delisting announcement has been followed by double-digit price declines for the affected assets.
- In contrast, the company’s addition of new trading pairs often leads to significant price surges, as seen with numerous altcoins in the recent past.
The Delisting Spree
Binance, the world’s largest cryptocurrency exchange, has decided to remove several margin trading pairs from its platform. According to the official announcement, LIT/BTC, NULS/BTC, SFP/BTC, BEL/BTC, LIT/BTC, LSK/BTC, NULS/BTC, and SFP/BTC will become unavailable to clients from January 16.
“Effective immediately, users will no longer be able to transfer any amount of assets of the aforementioned pair(s) via manual transfers and Auto-Transfer Mode into their Isolated Margin accounts. If users hold outstanding liabilities of said tokens, these users may only manually transfer up to the amount of liabilities of that token into their Isolated Margin accounts, less any collateral already available,” the company explained.
Additionally, Binance will delist the spot trading pairs AXL/FDUSD, C98/BTC, and ENJ/ETH on January 10. The company periodically conducts such amendments “to protect users and maintain a high-quality trading market.” It takes several factors into consideration when removing trading pairs, including poor liquidity and trading volume.
Withdrawing support from a major crypto exchange like Binance typically has a negative effect on the prices of the affected digital assets since it causes reputational damage and limited accessibility (among other setbacks). Literally, all involved cryptocurrencies in the delisting efforts have headed south in the past 24 hours, with many experiencing double-digit declines.
It is worth noting that the correction of the broader digital asset market could have also contributed to their poor performance. Recall that Bitcoin (BTC) soared above $102,000 on January 7, but several hours later, it nosedived by more than seven grand. Currently, it trades at around $95,500, while Ethereum (ETH) plunged below $3,400. The crash resulted in over $700 million in liquidations, as approximately 90% of the wrecked traders had opened long positions.
The Opposite Effect
Besides removing certain trading pairs, Binance also often adds new ones to respond to ongoing market trends and enhance its services. The involved cryptocurrencies usually witness a substantial price resurgence following those actions.
Such was the case in November last year when the company listed Cow Protocol (COW) and Cetus Protocol (CETUS). Both assets saw their valuations skyrocketing by 70% shortly after the disclosure.
Several weeks ago, the meme coin launched on the BNB chain – Simon’s Cat (CAT) – also pumped significantly. This happened mere hours after Binance included it in its HODLer Airdrops Portal.
Conclusion
Binance’s delisting announcement has had a significant impact on the affected assets, with many experiencing double-digit declines. On the other hand, the company’s addition of new trading pairs has led to significant price surges. As the crypto market continues to evolve, it is essential for exchanges like Binance to adapt and make changes to maintain a high-quality trading market.
FAQs
Q: Why did Binance delist the margin trading pairs?
A: Binance delisted the margin trading pairs to protect users and maintain a high-quality trading market.
Q: What factors does Binance consider when removing trading pairs?
A: Binance considers several factors, including poor liquidity and trading volume, when removing trading pairs.
Q: How does Binance’s delisting announcement affect the prices of affected assets?
A: Withdrawing support from a major crypto exchange like Binance typically has a negative effect on the prices of the affected digital assets since it causes reputational damage and limited accessibility.
Q: What is the opposite effect of Binance’s delisting announcement?
A: The opposite effect is that Binance’s addition of new trading pairs often leads to significant price surges, as seen with numerous altcoins in the recent past.
Q: How does Binance’s delisting announcement affect the broader digital asset market?
A: The delisting announcement can contribute to the correction of the broader digital asset market, leading to a decline in prices.
Q: What is the impact of Binance’s delisting announcement on traders?
A: The delisting announcement can result in significant losses for traders who hold positions in the affected assets, as seen in the recent liquidations.
Related Stories
Pi Network’s (PI) Price Jumps 6% on Buzz of a Big Upcoming Upgrade: Details Here
Rewrite the "A robust enhancement seems to be looming for the Pi ecosystem," one X account claimed. The native token...
Pump.fun Co-Founder Denies Cashing Out ICO Funds, Calls Allegations ‘Misinformation’
Rewrite the Lookonchain flagged the movement of $436.5 million USDC through Kraken, but Pump.fun's co-founder said it's a simple treasury...
Crypto Market Cap Flirts With $3T Mark as Bitcoin Was Stopped at $88K: Market Watch
Rewrite the M is today's top gainer, while ZEC has lost some of its momentum. Bitcoin’s price recovery that started...
DOGE’s Price Doubled Last Time This Happened
Rewrite the DOGE is up by 6% daily, but can it rocket further? The largest and oldest meme coin joined...
