Leading cryptocurrency exchange Binance, came to the fore with its recent altcoin listings. However, one detail in the listings in question attracted attention. Here is that detail that investors should also pay attention to.
In a post on X, Colin Wu, one of the popular journalists in the cryptocurrency world, highlighted a number of altcoins that are listed on the crypto exchange for futures but not for spot trading. The tokens mentioned were KAS, BSV, PYTH, BONK, ORBS, BIGTIME, TOKENFI and ETHW.
According to the article, this new approach has been implemented in many of Binance’s recent altcoin listings. Regarding why the exchange took this approach, Wu Blockchain said, “Analysis pointed out that the main reason for this is that it can earn fees without taking on excessive liability. Contract users have a strong tolerance for ups and downs, while spot users will criticize price declines.” he commented.
Wu Blockchain also reminded that tokens like Blur were only available for futures trading for a long time before their spot launch. He added that the token’s futures activity generally indicates the strength of the token.
The journalist also believes that adding a token for futures trading is easier than doing it for spot trading, and believes this detail is important. Wu Blockchain said this is because futures do not involve issues such as token holding or technical matching. “Binance is expected to continue operating a similar model in the future,” Wu Blockchain concluded.
Meanwhile, BTS, PERL, and TORN lost value yesterday after the crypto exchange delisted the tokens. As previously reported, Binance said that the delisting exercise is part of its regular review process to ensure that tokens listed on the platform meet certain required standards.