Binance, the world’s leading crypto exchange, has announced significant changes to its futures offerings, in a move that sent ripples through the cryptocurrency trading community. These changes include the delisting of several permanent contracts and adjustments to leverage and margin tiers for others. With these updates on the horizon, investors are grappling with a critical question: Will these actions trigger a price drop of the affected tokens?
Binance Futures adjustment taking place
The gist of the announcement revolves around the delisting of five perpetual contracts: USDⓈ-M IDEXUSDT, SLPUSDT, GLMRUSDT, MDTUSDT and AUDIOUSDT. These contracts will be delisted following automatic payments scheduled for May 15 and 16, 2024 (UTC).
Adding another layer of complexity, Binance Futures will adjust leverage and margin tiers even before IDEXUSDT, SLPUSDT, MDTUSDT, and AUDIOUSDT contracts are delisted. This regulation, which will take place on May 8, 2024, will directly affect existing positions opened before the update. Traders are urged to monitor their positions closely and adjust leverage accordingly to avoid potential liquidations.
Price impact on tokens
The potential impact of these changes on the prices of affected tokens is a major concern for investors. Tokens like IDEX, which is currently trading at $0.066 and has a good 24-hour trading volume, have witnessed price increases recently. However, as delisting and leverage adjustments approach, a price correction becomes a distinct possibility. Similarly, AUDIOUS, priced at $0.16, has already seen price declines, reflecting the sense of uncertainty in the market.
This sentiment appears to be shared by other affected tokens. SLPUSDT and MDTUSDT have experienced price declines of over 4% and 5% respectively in the last 24 hours. It is clear that market sentiment, regulatory developments, and especially Binance’s actions will significantly affect the price movements of these tokens in the coming days. Investors are anxiously awaiting the extent of the impact and how durable these tokens will be in the emerging market environment.
Binance delists four altcoin pairs from spot market
On the other hand, the stock exchange announced that it will delist the following trading pairs from the spot market as of May 10:
- AAVE/BNB
- DEGO/BTC
- LTC/TUSD
- SAND/ETH
The “Loans” arm of the stock exchange introduced new products
As the futures market undergoes changes, Binance Loans (Flexible Interest) has seen an expansion in its loanable asset portfolio. Celer Network (CELR), Enjin Coin (ENJ), Illuvium (ILV), LeverFi (LEVER), Livepeer (LPT), Phoenix (PHB), Reserve Rights (RSR) and Voxies (VOXEL) were added to the list. This gives users more flexibility when using Binance Credits (Flexible Rate).
The next few days will be crucial for both the futures market and the tokens affected by the delistings. While price declines are a possibility, overall market sentiment and the potential resilience of the tokens will play a significant role in determining the size of the impact. As the situation unfolds, investors are advised to stay informed, monitor their positions closely and adjust their strategies accordingly.
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