Important Binance Announcement Affecting Numerous Altcoin Traders

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 world’s largest cryptocurrency exchange 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.