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Binance Announces Changes: These Altcoin Traders are Affected
In a recent move, the world’s largest cryptocurrency exchange, Binance, has made significant changes to its platform. The update involves expanding its VIP Loan offerings with additional tokens and removing certain spot trading pairs. As you might expect, this news had a profound impact on some altcoin traders.
Firstly, it is essential to understand that Binance regularly reviews and adjusts its program to adapt to ongoing trends and enhance the user experience. In recent times, they have introduced Newton Protocol (NEWT) and Sahara AI (SAHARA) as new loanable assets on their VIP Loan platform. This service allows high-tier users to borrow substantial amounts of crypto using their existing tokens as collateral. The primary focus is to cater to institutional or high-net-worth traders who require additional capital for trading purposes.
To some extent, it can be expected that the introduction of these tokens would have a positive effect on the involved cryptocurrencies. In this instance, however, NEWT and SAHARA are still in a downward trend on a daily basis. The price of the former has decreased by 7% during this time frame, while SAHARA has recorded an 11% decline.
Now that we have discussed Binance’s VIP Loan changes, it is crucial to recognize that they will remove spot trading pairs ACT/EUR, FIO/BTC, TNSR/FDUSD, and TST/FDUSD. It is highly recommended that users update or cancel their Spot Trading Bots before July 4, as this change may result in potential losses.
The removal of support from the company can be expected to lead to a reduction in liquidity, diminished availability and visibility, and reputational damage for these affected assets. No surprise then that some of them have started falling in value following the announcement. FIO is perhaps the most severely impacted, having lost nearly 8% in the past day.
It’s essential to note that when Binance delists certain cryptocurrencies from its platform, the losses are typically even more significant. In fact, during a similar situation in April of this year, some coins like Alpaca Finance (ALPACA) experienced price declines of up to 60% following the news.
Source: cryptopotato.com
