Important announcement from Binance that affects many altcoin traders

TL;DR

Binance’s delisting announcement has been followed by a double-digit price drop for the affected assets. Instead, the company’s addition of new trading pairs often leads to significant price increases, as has been 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 not be available to customers from January 16.

“With immediate effect, users will no longer be able to transfer any amount of assets from the aforementioned pairs through manual transfers and the automatic transfer mode to their isolated margin accounts.

If users have outstanding liabilities on these tokens, those users can only manually transfer up to the amount of liabilities on that token to their segregated margin accounts, minus 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 makes these amendments “to protect users and maintain a high-quality commercial marketplace.” Several factors are taken into account when removing trading pairs, such as poor liquidity and trading volume.

The withdrawal of support from a major crypto exchange like Binance usually has a negative effect on the prices of the affected digital assets, causing reputational damage and limited accessibility (among other setbacks). Literally every cryptocurrency involved in delisting efforts has headed south in the past 24 hours, with many experiencing double-digit drops.

It’s worth noting that the broader digital asset market correction could also have contributed to its underperformance. Remember that Bitcoin (BTC) soared above $102,000 on January 7th, but a few hours later, it fell over seven thousand.

It is currently trading around $95,500, while Ethereum (ETH) fell below $3,400. The crash resulted in more than $700 million in liquidations, as roughly 90% of the wiped out traders had opened long positions.

The opposite effect

In addition to removing certain trading pairs, Binance also frequently adds new ones to respond to current market trends and improve its services. The cryptocurrencies involved usually witness a substantial price resurgence after such actions.

Such was the case in November of last year when the company listed Cow Protocol (COW) and Cetus Protocol (CETUS). Both assets saw their valuations soar 70% shortly after the disclosure.

Several weeks ago, the meme coin launched on the BNB chain, Simon’s Cat (CAT), also rose significantly. This happened just hours after Binance listed it on its HODLer Airdrops portal.

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