Unexpected Altcoin Rises 35% Daily After Binance Support: Details

TL;DR

Binance launched the CHESS/USDT perpetual contract, which was followed by a 35% price increase for the asset involved. Tokens such as Toncoin (TON) and Syscoin (SYS) have also seen significant price movements following exchange support over the past month. The Amazing Gainer

The world’s largest crypto exchange expanded the list of trading options offered on Binance Futures by launching the CHESS/USDT perpetual contract. The option allows leverage of up to 75 times and supports the so-called “multi-asset mode”.

“Multi-asset mode allows users to trade the aforementioned CHESS/USDT perpetual contract across multiple margin assets, subject to applicable cut-offs. For example, when Multi-asset mode is enabled, users can use BTC as margin when they negotiate the aforementioned perpetual contract,” the company explained.

Perpetual contracts allow traders to speculate on the price of a specific cryptocurrency without owning it. They have certain specifications, including an expiration date, which means users can hold their positions indefinitely. These contracts have a high return potential, but also carry a higher risk.

Cryptocurrencies often see their prices head north after support from a major exchange like Binance due to improved liquidity, additional visibility, and increased credibility. Transchess (CHESS) was no exception as its valuation increased by 35% on a daily basis. Today (August 29), it topped $0.22, the highest level in four months.

CHESS price, Source: CoinGecko The Binance effect in the past

Earlier this month, the exchange adopted Toncoin (TON) by introducing the following trading pairs to users: TON/BTC, TON/USDT, TON/FDUSD and TON/TRY. The price of the token reacted positively, increasing by 10% and reaching $6.40.

TON continued the uptrend, briefly surpassing $7 in mid-August before falling to nearly $5 a few days ago. Its price began to retreat immediately after Telegram founder and CEO Pavel Durov was arrested in France. TON recovered some of the losses in the next few days and is currently trading around $5.60 (according to CoinGecko data).

Another altcoin that saw a substantial increase after support from Binance is Syscoin (SYS). Its value exploded by 60% on August 19 following the company’s decision to allow the SYS/USDT perpetual contract, which allows a maximum leverage of up to 50x.

However, the rally was short-lived, with the asset down 45% from its local high and currently trading at around $0.11.

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