Important Binance Announcement Affecting Numerous Altcoin Traders

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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

The leading global cryptocurrency trading platform has opted to delete several margin trading pairs from its system. As stated in the official announcement, the pairs LIT/BTC, NULS/BTC, SFP/BTC, BEL/BTC, LSK/BTC, and again NULS/BTC, as well as SFP/BTC, will no longer be accessible to users starting January 16.

Starting right away, users can’t move any quantity of the specified asset pairs through manual transfers or Auto-Transfer Mode to their Isolated Margin accounts.

Users who have outstanding balances in those particular tokens can only manually move an amount equal to their liability for that token into their Isolated Margin accounts, provided it’s less than the collateral they currently possess, according to the explanation from the company.

Beyond this, Binance plans to remove the trading pairs AXL/USD, C98/BTC, and ENJ/ETH from their platform on January 10. This action is often taken by the company to ensure user safety and preserve a top-notch market for trading. Factors such as low liquidity and trading volume are carefully evaluated when deciding to discontinue certain pairs.

Pulling backing from a prominent crypto exchange such as Binance usually leads to a downward trend in the prices of the affected digital assets because it results in a hit to reputation and reduced accessibility (among other issues). In simpler terms, when a cryptocurrency is being delisted, its value tends to decrease significantly over a 24-hour period, with numerous coins experiencing double-digit losses.

It’s important to consider that the broader decline in the digital asset market may have impacted their underperformance as well. You might remember that Bitcoin (BTC) reached a high of over $102,000 on January 7, but just a few hours later, it plummeted by more than $7,000.

At present, its price hovers around $95,500, whereas Ethereum (ETH) has dipped below $3,400. This steep decline has led to over $700 million in liquidations, as it’s estimated that about 90% of the affected traders had initially taken long positions.

The Opposite Effect

In addition to discontinuing certain trading pairs, Binance frequently introduces new ones to keep pace with evolving market trends and improve its offerings. The associated cryptocurrencies often experience a significant price spike after such actions.

In November of last year, it was during this time that the company introduced Cow Protocol (COW) and Cetus Protocol (CETUS to the market. Shortly following the announcement, the value of both assets significantly increased by an impressive 70%.

Or, in a more concise form:
Last November, the company listed Cow Protocol (COW) and Cetus Protocol (CETUS. After the reveal, their values soared by 70% in a short time.

A few weeks back, the meme coin Simon’s Cat (CAT) debuted on the BNB chain. Notably, this coin saw a substantial surge shortly after Binance added it to their HODLer Airdrops Platform.

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2025-01-08 20:46