Binance Limits Support for These Major Altcoins

Binance will remove three “build-and-build” (BNB) altcoin trading pairs amid mounting pressure on peer-to-peer (P2P) businesses in Nigeria. Spot traders will no longer be able to trade using the ALGO/BNB and XLM/BNB pairs after March 8, 2024.

Following a review of all listed trading pairs, Binance will also reduce support for BNB spot pairs affecting AERGO, ALGO, BNB, CTSI, FARM, FUN, and XLM.

Reasons why Binance will delist altcoin pairs

Binance announced that it will remove three BNB pairs, two Bitcoin (BTC) pairs, and one ETH pair after a regular review of all listed pairs. It did not give a reason for the removals, but said low liquidity and trading volumes were influencing these decisions.

Low liquidity in one of the affected pairs (e.g. ALGO/BNB) means fewer traders are willing to offer BNB in ​​exchange for ALGO tokens and vice versa. Therefore, it becomes difficult for traders to enter and exit positions, which affects trading volume. Supporting pairs is a negative overhead for exchanges as they lose trading fees.

Exchanges may also remove trading pairs to minimize legal risks. Coinbase wallet removed the XRP pair after the U.S. Securities and Exchange Commission sued Ripple Labs and some of its executives. After last year’s lawsuit against Coinbase and Binance, Robinhood Markets also took similar action against SOL, MATIC, and ADA.

“Based on our latest review, we have decided to end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27, 2023 at 6:59 PM ET. Transfer support for ADA, MATIC, and SOL ended on June 26, 2023 at 6:59 PM ET. No other coins are affected and your crypto remains safe on Robinhood. ” says the company. Said.

Read more: 7 Best Binance Alternatives in 2024

However, the reason is binance deletion It may be more subtle. The launch of smart contracts for financial services by Stellar and the push for tokenization by Algorand may have left traders uncertain about XLM and ALGO price predictions from a trading perspective. The XLM token could create further use cases as Stellar’s DeFi efforts progress, while ALGO could have use cases in minting real-world asset tokens.

BNB boosted by eliminating naira

Meanwhile, Binance is facing an existential crisis in Nigeria. Several executives, including CEO Richard Teng, have been accused by the Nigerian government of currency manipulation. On Monday, the state detained two executives and subpoenaed Teng to appear before the House Financial Crimes Committee.

As the legal controversy intensified, Binance was forced to remove support for Naira on its exchange. Users will no longer be able to deposit or withdraw naira from Friday. Binance also converts Naira deposits to BNB if they are left on the platform. This can cause BNB volume to increase after removing XLM and ALGO BNB pairs.

BNB holders can benefit from lower trading fees on Binance or use BNB to trade on decentralized and P2P exchanges. The price of this asset recently broke the $400 barrier and is currently sitting at $420.32. The trading volume in the past 24 hours was $149.54 million.

Read more: How to buy BNB and everything you need to know

BNB participated in the recruitment of new coins following the launch of Binance in 2017. It reached an all-time high of $686.31 in May 2021. The exchange has not responded to inquiries regarding the removal of the latest trading pair as of this writing.

Disclaimer

All the information contained on our website is published in good faith and for general information purpose only. Any action you take upon the information you find on our website, is strictly at your own risk.

Related Article

0 Comments

Leave a Comment