TL;DR
- The launch of new perpetual contracts on Binance’s platform resulted in major green candles for two cryptocurrencies.
- At the same time, the company delisted another perpetual contract, but the involved token surprisingly pumped after the announcement.
What a Pump
The world’s biggest crypto exchange expanded the list of trading choices on Binance Futures by introducing the STBL/USDT perpetual contract with up to 50x leverage. This type of product has no expiration date and allows traders to bet on price changes without actually holding the cryptocurrency.
STBL, the token involved in the offering, reacted more than positively to the news, with its price skyrocketing by almost 500% and briefly surpassing $0.20.
The cryptocurrency saw the light of day earlier this week and serves as the governance and utility token of a new stablecoin protocol, which combines yield, transparency, and real-world asset (RWA) backing.
Despite its price pump, STBL is still far away from the leading digital assets, with its market cap standing just north of $100 million.
Toshi (TOSHI), a meme coin with a much higher market ranking, has also seen a notable price surge for the same reason. It soared by 60% to its highest level since February this year after Binance launched the perpetual contract TOSHI/USDT with up to 75x leverage.
Such price reactions are not surprising because backing from the exchange leads to a sharp increase in visibility, accessibility, liquidity, and provides a reputational boost.
Other Binance Updates
Conversely, when the company withdraws its support, it usually causes a price pullback for the involved cryptocurrencies. However, this wasn’t the case with Stella (ALPHA), whose valuation spiked by 23% over the last 24 hours.
The increase happened despite the announcement that Binance will delist the ALPHA/USDT perpetual contract on September 23.
“Users are advised to close any open positions prior to the delisting time to avoid automatic settlement. Users are not allowed to open new positions for the aforementioned contract starting from 2025-09-23 08:30 (UTC),” the disclosure reads.
Additionally, Binance said it will remove and cease trading on the spot trading pairs NXPC/BNB and HUMA/BNB on September 19. The assets witnessed little to no price volatility after the announcement.
The post The Binance Effect: Altcoin Skyrockets 500% After Exchange Support appeared first on CryptoPotato.
