The world’s largest crypto exchange has once again triggered a major rally in certain digital assets after implementing new services on its platform.
At the same time, numerous other tokens headed south after Binance revealed it would terminate access to them.
The Binance Effect
Earlier today (January 29), the company revealed the launch of BIRB/USDT and GWEI/USDT perpetual contracts with up to 50x leverage. Both products have the multi-assets mode activated, which allows users to employ other cryptocurrencies in the trading process.
Perpetual contracts have no expiry date and enable people to speculate on the price of the selected assets with borrowed money and without owning them.
Moonbirbs (BIRB) and ETHGas (GWEI) both headed north by double digits shortly after the announcement. The latter posted a gain of 30%, while the former experienced a slightly more modest increase.
This is a typical reaction given the impact that Binance listings can have. Backed by the undisputed leader among crypto exchanges, assets often experience increased liquidity, greater availability, and improved reputation.
The Opposite Reaction
Besides adding new trading services, Binance also scraps tokens that no longer comply with the necessary criteria. Based on the recent analysis, it announced that the following cryptocurrencies, WIZARD, SHOGGOTH, G, FWOG, UFD, BRIC, UPTOP, PORT3, XNAP, MORE, BOMB, and BOOST, do not adhere to Binance Alpha’s standards and will be removed from the featured list. The firm informed that the sale of these tokens will still be allowed after the removal.
Most affected cryptocurrencies experienced sharp price declines immediately after the disclosure. BOOST took the biggest blow with its valuation crashing by over 70%.
Furthermore, Binance said it will terminate several spot trading pairs on January 30, including AXS/ETH, NEAR/BNB, SEI/BNB, SKL/BTC, and others. The assets included in the effort are mostly in red territory, albeit registering milder declines than BOOST and the other delisted coins.
Their negative performance could also be attributed to the renewed broader crypto market correction, with Bitcoin (BTC) slipping below $88,000 and Ethereum (ETH) losing the $3,000 psychological level.
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