Major Binance Update Affecting Multiple Meme Coins: Details

TL;DR

Binance will increase collateral ratios for several cryptocurrencies, including Floki Inu (FLOKI) and Dogs (GOGS). The company introduced new trading pairs for DOGS, possibly contributing to the meme coin’s solid performance last week. The latest update

The world’s largest crypto exchange will modify the collateral relationship of several altcoins, including some trending meme coins like Floki Inu (FLOKI) and Dogs (GOGS). The update is scheduled for September 3rd and will last approximately one hour.

FLOKI’s guarantee ratio will rise to 40% from the current 35%. DOGS will see an even more substantial increase: from 10% to 30%.

Other cryptocurrencies whose ratios will increase starting tomorrow (September 3) include Toncoin (TON), Render (RENDER), Sun Token (SUN), SuperRare (RARE) and AdEx (ADX).

“The margin ratio will affect the unified maintenance margin ratio (uniMMR). Users should monitor uniMMR closely to avoid any liquidation or potential losses that may result from the margin ratio change,” Binance added.

Collateral ratio in crypto refers to the ratio of insurance that must be provided to secure a loan or hold a position. It is usually shown as a percentage and indicates how much the collateral is worth compared to the amount borrowed. A higher ratio provides greater assurance that the lender will be able to recover the borrowed funds even if market conditions change unfavorably.

The previous amendments

Binance introduced several initiatives related to meme coins in the past month. For example, it added BONK/BRL as a new trading pair on Binance Spot.

The popular meme coin Bonk Inu witnessed little to no volatility after the announcement, but this was not the case in December 2023. Binance then officially listed the token on its platform, while the price rose to an all-time high.

Last week, the exchange expanded the list of offerings on Binance Spot by adding DOGS/BRL and DOGS/USDC. It also allowed to market bot services for couples.

DOGS is a relatively new meme coin built on the TON blockchain. It was launched at the end of August and quickly became an industry sensation with a market capitalization exceeding $800 million. However, it lost momentum and currently stands at less than $600 million.

DOGS is worth about $0.001118 as of now, which represents a 30% decline from the all-time high recorded on August 28th.

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