The popular exchange Binance plans to delist a large number of Margin Trading pairs from its platform, effective 31 May.
Binance has declared an imminent modification to its margin trading services. On May 31, multiple margin trading pairs are scheduled to be delisted from the exchange’s platform.
The prominent cryptocurrency exchange platform disclosed in a recent press release that it intends to restrict access to specific trading pairs. These pairs include MDX/BTC, SEI/TUSD, and SUI/TUSD, which are cross-margin trading pairs; ALPACA/BTC, ARKM/TUSD, CHESS/BTC, MDX/BTC, SEI/TUSD, and SUI/TUSD will be eliminated on an isolated margin basis.
The exchange informed its users that it will implement various measures to ensure a seamless transaction process before the delisting date. On May 24 at 06:00 (UTC), it will suspend isolated margin borrowing for all affected pairs. Consequently, users can no longer borrow funds on the platform to use them as leverage for these trading pairings.
Binance disclosed that on the day of delisting, it will finalize all open positions held by users on the delisted pairs, execute an automated settlement procedure, and terminate any pending orders. Subsequent to these procedures, the impacted asset will be entirely eliminated from the platform.
Traders will be unable to modify active positions throughout the delisting procedure. Therefore, to mitigate potential losses for the trader, Binance recommends that its clients close their positions or transfer their assets from the margin wallet to the spot wallet before the designated deadline. The exchange stated the following:
“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.”
Furthermore, although the delisted pairs are unavailable, Binancians can trade the impacted asset via alternative trading pairs that will remain accessible for margin transactions.
Adverse Price Effects
In the past twenty-four hours, the prices of the impacted tokens have decreased, which may be a response to the news. SEI currently trades at $0.55, whereas MDX has declined by more than 4% to trade at $0.064. The price of SUI has decreased by more than 5 percent, from $1.15 to $1.09. ALPACA, which had exhibited favorable sentiment over the previous two days, has also declined by 3%, from $0.1822 to $0.17. Additionally, ARKM, which was impacted, experienced a 2% decline, whereas CHESS has plummeted by more than 8%, falling from $0.1989 to $0.1818.
Such delisting news can easily disrupt the market, mainly when it originates from a significant exchange like Binance. The subsequent fear, uncertainty, and doubt (FUD) may cause a temporary price decline. In addition, enormous withdrawals are anticipated to generate bearish sentiment.
