3 Important Binance Announcements Concerning Some Altcoin Traders: Details

TL;DR

• Binance rolled out new perpetual contracts and will implement other changes to its platform this week.
• Despite the news, the involved cryptocurrencies in the initiatives remain in red territory following the broader correction of the crypto market.

What’s New?

The world’s largest crypto exchange unveiled three amendments, which will take effect later this week or have already been implemented.

The first one (which is live as of today) is the introduction of the BIO/USDC perpetual contract with up to 75x leverage. The product enables users to bet on the price of the underlying cryptocurrency without owning it, and has no expiration date. Binance explained that the maximum funding rate of the contract at the time of launch is set at +2%/ -2%, while the funding fee settlement frequency is every four hours.

“Based on market risk conditions, Binance may adjust the specifications of the BIO/USDC Futures contract from time to time, which include the funding fee, tick size, maximum leverage, initial margin, and/or maintenance margin requirements,” it added.

Usually, support from the company has a boosting effect on the prices of the involved tokens, but this wasn’t the case here. Bio Protocol (BIO) crashed by almost 30% in the past 24 hours and is currently worth approximately $0.23 (per CoinGecko’s data). 

The second disclosure involves the expansion of choices offered on Binance Spot. The exchange will open trading for the A2Z/USDC, SSV/USDC, and UMA/USDC pairs on August 26. The options will not be available to all users, as those residing in regions such as the USA, the Netherlands, Iran, Canada, and others will be excluded.

Similar to BIO, the prices of A2Z, SSV, and UMA remain in red territory, which coincides with the overall pullback of the entire cryptocurrency market. 

Lastly, the company revealed it will add Bitlayer (BTR) to Binance Alpha on August 27 and will introduce the BTR/USDT perpetual contract with up to 50x leverage on the same date. That section comprises early-stage cryptocurrency projects with potential for growth, serving as a pre-listing token selection pool.

BTR is designed to power Bitlayer (a BTC layer-2 blockchain solution) and is yet to start trading. Another popular exchange that will embrace the token is KuCoin. It will list the BTR/USDT pair on August 27, with withdrawals becoming available the following day. 

The Binance Effect in the Past

As mentioned above, backing from a behemoth like Binance typically has a bullish effect on the valuation of the involved tokens, due to factors such as increased liquidity, improved availability, and a better reputation.

Earlier this month, it launched the AIO/USDT and XNY/USDT perpetual contracts with up to 50x leverage. OlaXBT (AIO) shot up by nearly 50% after the announcement.

Last week, Plume (PLUME) also headed north by double digits following its addition to Binance’s HODLer Airdrop lineup.

Meanwhile, the Pi Network community continues to await support for PI. In February, Binance asked its users whether they wanted to see the asset available for trading on the platform, but despite the overwhelming support, it remains silent on the matter.