These 3 Altcoins Dump Hard After Binance Ceases Support: Details Here

Binance users are no longer allowed to open new positions on the KDA/USDT, AXS/USD, and THETA/USD perpetual contracts.

Listings or delistings from the world’s largest cryptocurrency exchange can trigger substantial volatility.

Earlier today (November 3), it terminated certain trading services involving three altcoins, resulting in major price declines for the affected ones.

The Binance Effect

According to the official announcement, Binance Futures will close all positions and conduct an automatic settlement on the KDA/USDT perpetual contract on November 6. A day later, it will do the same for the AXS/USD and THETA/USD contracts.

The company advised users to close any existing positions prior to the delisting period and noted that clients are not allowed to open new positions for those products.

“In order to protect users and prevent potential risks in extremely volatile market conditions, Binance Futures may undertake additional protective measures toward the aforementioned contracts without further announcement, including but not limited to adjusting the maximum leverage value, position value, and maintenance margin in each margin tier, updating funding rates, such as the interest rate, premium and capped funding rate, changing the constituents of the price index, and using the Last Price Protected mechanism to update the Mark Price,” the disclosure reads.

Kadena (KDA) headed south shortly after the news, dropping to as low as $0.03 (a 22% collapse on a daily scale). Axie Infinity (AXS) and Theta Network (THETA) retraced by 9% and 8%, respectively.

The Previous Announcement

Price dumps are usually most severe when Binance terminates all trading services with a certain cryptocurrency. Such was the case last week when the exchange revealed it would delist Kadena (KDA), Flamingo (FLM), and Perpetual Protocol (PERP). KDA once again took the biggest blow, with its price sinking by around 30%.

Efforts of that type reduce the liquidity and visibility of the affected coins and cause reputational damage. On the other hand, support from Binance typically has the entire opposite effect and often acts as a price catalyst.

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In September, the firm introduced the STBL/USDT perpetual contract with up to 50x leverage, and the asset’s valuation exploded by 500%. Shortly after, it launched the FLUID/USDT perpetual contract with up to 75x leverage, which was followed by a 55% rally for FLUID.