Binance to Delist XEM, ORBS, and LOOM Perpetual Contracts

by

As an analyst with over a decade of experience in the volatile world of cryptocurrency markets, I can’t help but feel a sense of familiarity when observing Binance’s latest decision to delist USD-M perpetual contracts for XEM, ORBS, and LOOM.

Binance is planning to remove the USD-perpetual contracts for NEM (XEM), Orbs (ORBS), and Loom Network (LOOM) from its trading platform in the near future. Here are their current details:

News about de-listing has made waves across the cryptocurrency sector, notably affecting those traders who are heavily involved in derivative trading. This action aligns with Binance’s approach to safeguard users from market hazards and simplify their product assortment.

Binance Delists Leads to a Dip in Market Confidence

Beginning on December 9th, Binance will stop offering USD-M perpetual contracts for XEM, ORBS, and LOOM. As of 08:30 UTC, it is no longer possible to create new trades for these contracts. By 09:00 UTC, any open positions will be automatically closed through a settlement process.

This is more than a routine change for many in the crypto community. The delisting marks reduced support from Binance, one of the largest exchanges. This could impact the tokens’ trading activity and weaken their market reputation.

As a result of the recent events, there has been a noticeable decrease in the prices of XEM, ORBS, and LOOM. This expected response serves as a clear indication. For example, XEM dropped by 7%, currently valued at $0.026, with its lowest point being $0.02527 in recent times.

The price of ORBS fell by 6%, reaching $0.03301, and Loom Network (LOOM) dropped by 4% to $0.07367. These significant decreases suggest that crypto markets can be influenced by news about delisting. When people perceive a reduction in liquidity or accessibility, it often leads to selling off their holdings.

Binance has previously taken similar actions. On Monday, the platform removed five tokens associated with Tether’s USDT, specifically Gifto (GFT), IRISnet (IRIS), SelfKey (KEY), OAX, and REN from its listings. This action was part of a regular asset review process.

Following Binance’s decision to remove several Bitcoin trading pairs, a significant selling pressure ensued on the impacted tokens. Previously, in the last month, the platform also removed tokens associated with Algorand, DigiByte, and GMX, which resulted in comparable market responses.

Although these moves can sometimes draw negative comments, they’re essential components of an overall strategy aimed at matching products with user preferences and economic trends. For traders, these choices serve as a prompt to reassess their investments and ponder the potential risks associated with possessing less fluid assets.

Key Goals Behind Token Delisting

Binance’s choice to remove these contracts extends beyond just performance indicators such as trading volume and market liquidity. It signifies the exchange’s commitment to minimizing risks in unstable markets, which is more crucial for tokens like XEM, ORBS, and LOOM where the liquidity might not commensurate with their potential volatility.

As an analyst, I can express this point in a more conversational manner: “I’ve prepared the market for potential volatility during this transitional phase. To ensure stability, I’ve made adjustments such as limiting leverage, revising funding rates, and fine-tuning positions on Binance.

As a crypto investor, I appreciate the measures taken to streamline the delisting process. These actions underscore the platform’s dedication to fostering innovation and safeguarding the financial wellbeing of its user community.

In summary, Binance typically follows a delisting with the addition of promising new tokens. Over the last month, they have added several new tokens to their platform, such as Sudeng (HIPPO) and X Empire Perpetual Contracts.

Read More

2024-11-29 13:18