As a seasoned analyst with years of experience in the cryptocurrency market, I’ve witnessed firsthand the impact that major exchanges like Binance can have on smaller, less-known tokens. The recent launch of the CHESS/USDT perpetual contract is no exception, as we saw a whopping 35% price increase for Transchess (CHESS) within a day – a testament to the “Binance Effect.”
TL;DR
- Binance launched the CHESS/USDT perpetual contract, which was followed by a 35% price increase for the involved asset.
Tokens like Toncoin (TON) and Syscoin (SYS) have also experienced significant price movements following support from the exchange in the past month.
The Surprising Gainer
Binance, the world’s largest cryptocurrency exchange, has broadened its trading options on Binance Futures by introducing the CHESS/USDT perpetual contract. This new offering allows up to 75 times leverage and supports what is commonly known as “multi-asset mode.”
The “Multi-assets mode” feature enables traders to deal with the previously mentioned CHESS/USDT perpetual contracts using various collateral assets, considering the appropriate haircuts. For instance, once this Multi-Assets Mode is activated, users can employ Bitcoin as their margin when trading the specified perpetual contract, according to the company’s explanation.
With perpetual contracts, traders can venture into predicting a cryptocurrency’s price without having to own it directly. These contracts don’t have an expiration date, allowing users to keep their positions as long as desired. However, while they offer high earning potential, they also carry higher risks.
Cryptocurrencies frequently experience an upward price trend when backed by significant platforms like Binance, thanks to enhanced liquidity, greater visibility, and boosted credibility. Today, for instance, Transchess (CHESS) jumped 35% in value within a day, reaching a peak of $0.22 – its highest point in four months.
The Binance Effect in the Past
Previously this month, the platform added Toncoin (TON) to its roster of tradable assets, offering users the following markets: TON/BTC, TON/USDT, TON/FDUSD, and TON/TRY. The token’s value surged by 10%, hitting a high of $6.40.
TON continued the uptrend, briefly surpassing $7 in mid-August before tumbling to nearly $5 a few days ago. Its price started retreating immediately after Telegram’s founder and CEO, Pavel Durov, was arrested in France. TON recovered some of the losses in the next few days and currently trades at around $5.60 (per CoinGecko’s data).
A digital currency called Syscoin (SYS) also saw a significant surge in value after Binance’s endorsement. The price of Syscoin skyrocketed by approximately 60% on August 19, thanks to Binance enabling the SYS/USDT perpetual contract, offering a maximum leverage of up to 50 times.
However, the rally was short-lived, with the asset plunging by 45% from its local top and currently hovering at approximately $0.11.
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2024-08-29 12:53