Cryptocurrency exchange giant Binance periodically reviews all spot trading pairs to protect users and ensure a high-quality trading market. As a result of these reviews, some pairs may be deleted due to factors such as low liquidity and transaction volume.
Binance will delist various cryptocurrency pairs
Binance, one of the largest cryptocurrency exchanges in terms of daily transaction volume, gave delist news in its announcement today. Based on its latest reviews, the exchange will delist and cease trading the following spot trading pairs as of 06:00 UTC on July 12, 2024:
- ALGO/ETH
- DYM/FDUSD
- SXP/BNB
However, it should be underlined that deleting a spot trading pair does not affect the availability of the represented tokens on the Binance Spot platform. Users can still trade the base and quote assets of the deleted trading pair through other trading pairs available on Binance. Binance will terminate Spot Trading Bots services for these spot trading pairs on July 12, 2024 at 06:00 UTC. To avoid potential losses, users using Spot Trading Bots are strongly advised to update or cancel their bots before the expiration of the service.
What does this development mean?
This announcement may affect investors and Binance users interested in some cryptocurrencies. Let’s take a closer look at the reasons for this delisting process and what it means for users. Liquidity indicates how easy it is to buy and sell an asset. When liquidity is high, assets can be bought and sold quickly and smoothly. In case of low liquidity, trading becomes difficult and prices may become more volatile.
Transaction volume refers to the total transaction amount of an asset within a certain period of time. When trading volume is low, there may not be enough demand in the market to buy or sell that asset. Considering the factors mentioned above, Binance seems to have decided that deleting the trading pairs in question would provide a safer and more efficient trading environment for users. In pairs with low liquidity and trading volume, prices may become more volatile and users may experience losses due to sudden price changes. If you have ALGO, DYM or SXP tokens and you are investing these tokens by trading through the above trading pairs, you need to take action and consider the following items:
- Trading dates for deleted trading pairs will expire on July 12. You cannot trade these pairs after this date.
- Binance will still keep the base and contrarian assets of the deleted pairs (e.g. ALGO and ETH) on its platform. Therefore, you can trade these tokens through different trading pairs.
- If you are using Spot Trading Bots and these bots are running on one of the deleted trading pairs, you will need to update or cancel your bots before July 12th. Otherwise, bots may continue to operate and you could potentially incur losses.
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