Major Binance Update on Numerous Altcoin Traders: Details

TL;DR

Binance is increasing collateral ratios for some popular altcoins, with the changes taking effect on November 1st. Users are advised to monitor their margin levels to avoid possible liquidations due to these adjustments. The goods affected

The world’s largest crypto exchange will update the collateral ratio of seven altcoins listed on its platform. These include the popular meme coins Neiro (NEIRO) and Turbo (TURBO), as well as Sui (SUI), Toncoin (TON), Eigenlayer (EIGEN), Eurite (EURI), and Scroll (SCR).

The collateral ratio shows the amount of assets needed to back a loan or maintain an open position. It is usually shown as a percentage, which reflects the value of the collateral compared to the borrowed funds. A higher ratio increases the likelihood that the lender will be able to recover its funds, even if the market declines.

Six of the seven assets involved experienced a 10% increase. For example, NEIRO’s ratio was increased from 30% to 40%, while TURBO’s was raised from 10% to 20%. SUI is the only one that has experienced a 5% rise and will be set at 60%. The changes will come into effect on November 1.

Binance added that the collateral ratio will affect the unified maintenance margin ratio (uniMMR). It warned users to monitor uniMMR closely to avoid any potential liquidation or substantial losses that could result from the switch.

Previous Binance Updates

The company carried out many other amendments this month, some focused on meme coin trends. Last week, it launched 1000 CATUSDT perpetual contracts on its futures platform, which allows up to 75x leverage and supports multi-asset mode. Somewhat expected, the cat-themed meme coin Simon’s Cat (CAT) saw a remarkable resurgence shortly after the announcement, rising 65% daily.

Binance later said it will delist Rupiah Token (IDRT), Keep3rV1 (KP3R), Ooki Protocol (OOKI), and Unifi Protocol DAO (UNFI) on February 6, 2025.

Removing cryptocurrencies from such a major exchange leads to reduced liquidity, diminished credibility and negative sentiment from industry participants. As such, it was no surprise that the prices of affected altcoins crashed by double digits after the disclosure. UNFI suffered the most, with its valuation falling by more than 40%.

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