Binance, the world’s largest cryptocurrency exchange by trading volume, made a major announcement today October 21, 2023. The exchange revealed its plans to delist 17 trading pairs from its Liquid Swap liquidity pool, which includes popular cryptocurrencies like Shiba Inu (SHIB), Cardano (ADA), Solana (SOL), and others. This decision is scheduled to take effect on October 27, 2023, at 4:00 AM UTC.
Concentrating Liquidity and Enhancing Trading Prices
Binance stated that the delisting of these tokens resulted from a periodic review aimed at concentrating liquidity, reducing slippage, and providing users with improved transaction prices. By streamlining the available assets in the Liquid Swap liquidity pool, Binance seeks to optimize trading conditions for its users.
Trading Pairs Set for Delisting
The following tokens are scheduled to be delisted from Binance Liquid Swap: BUSD/BNB, BUSD/BTC, BUSD/ADA, BUSD/ETH, BUSD/LTC, BUSD/SHIB, BUSD/MATIC, BUSD/SOL, BUSD/UNI, BUSD/LINK, BUSD/DOGE, BUSD/DAI, and BUSD/USDT.
It is important to note that the removal of these tokens from Liquid Swap will not affect their trading availability on Binance Spot. Users can still engage in the buying, selling, and holding of these assets on Binance’s Spot trading platform.
Market Impact and Potential Volatility
The exclusion of SHIB, BTC, ETH, and other popular cryptocurrencies from Binance Liquid Swap is expected to have a significant impact on the market. SHIB, in particular, being one of the most popular meme coins with a large and active community, could witness notable fluctuations.
Additionally, Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization, may experience increased volatility due to reduced liquidity on Binance Liquid Swap.
Impact on Users and Withdrawal Procedure
Users currently holding positions in the affected liquidity pools will automatically receive their assets in their spot wallets on October 27, 2023. In case users wish to withdraw their positions before the specified date, they have the flexibility to do so at any time. Moreover, as of October 23, 2023, new liquidity cannot be added for any of the 17 affected pairs.
The delisting of these 17 tokens from Binance Liquid Swap represents a significant move by the world’s leading cryptocurrency exchange. While it is expected to have a notable impact on the market, specifically for SHIB, BTC, and ETH, the change is unlikely to have a major influence on the overall trading experience on the platform.
Users who currently hold positions in the affected liquidity pools are advised to take note of the upcoming delisting and consider taking appropriate actions aligned with their trading strategies.
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