By
Anisha Pandey
June 14th, 2024
The prices of the affected tokens have been declining in the last 24 hours, which could be a reaction to the news.
Binance has announced an upcoming change to its margin trading offerings. The exchange revealed that it will delist several margin trading pairs on its platform, and this will take effect on May 31.
In a recent release by the leading crypto exchange platform, it was revealed that the company will be withdrawing access to some trading pairs, such as cross-margin trading pairs like MDX/BTC, SEI/TUSD, and SUI/TUSD, while the pairs to be removed on the isolated margin are ALPACA/BTC, ARKM/TUSD, CHESS/BTC, MDX/BTC, SEI/TUSD, and SUI/TUSD.
The exchange made it known to its users that prior to the delisting date, it will take several steps to ensure a smooth transaction, and on May 24 at 06:00 (UTC), it will suspend isolated margin borrowing for all the affected pairs. This means individuals on the platform will no longer have the opportunity to borrow funds to leverage these trading pairs.
Binance revealed that on the delisting day, it will close all users’ open positions on the affected pairs, conduct an automatic settlement process, and cancel all pending orders. Following these actions, the affected asset will then be completely removed from the platform.
Traders who have open positions will not be able to update them during the delisting process. Thus, Binance advises its customers to take proactive measures by closing their position or perhaps transferring their assets from the margin wallet to the spot wallet before the deadline to prevent possible losses on the part of the trader. The exchange said:
“Please note that users will not be able to update their positions during the delisting process, and they are strongly advised to close their positions and/or transfer their assets from Margin Wallets to Spot Wallets prior to the cessation of margin trading.”
Additionally, while the delisted pairs are no longer available, Binancians can still trade the affected asset through other trading pairs that will still be available for Margin trading.
Negative Price Impact
The prices of the affected tokens have been declining in the last 24 hours, which could be a reaction to the news. MDX has dropped by over 4%, now trading at $0.064, while SEI has dropped by 1.81%, currently trading at $0.55. SUI has experienced a drop in price, falling by over 5% from $1.15 to $1.09. Similarly, ALPACA, which had been bullish for the past two days, has dipped by 3% to $0.17 from $0.1822. ARKM, another affected token, also dropped by 2%, while CHESS has fallen by over 8%, plummeting from $0.1989 to $0.1818.
Such delisting news, especially from a major exchange like Binance, can easily disrupt the market. The fear, uncertainty, and doubt (FUD) that follows could pull the prices down for a while. Moreover, massive withdrawals are expected to lead to bearish sentiments.