Important Binance Update Concerning Numerous Altcoin Traders: Details
TL;DR
- Binance is raising collateral ratios for some popular altcoins, with changes taking effect on November 1.
- Users are advised to monitor their margin levels to prevent potential liquidations due to these adjustments.
The Affected Assets
The world’s biggest crypto exchange will update the collateral ratio for seven altcoins listed on its platform. Those include the popular meme coins Neiro (NEIRO) and Turbo (TURBO), as well as Sui (SUI), Toncoin (TON), Eigenlayer (EIGEN), Eurite (EURI), and Scroll (SCR).
The collateral ratio shows the amount of assets needed to back a loan or maintain an open position. It is typically displayed as a percentage, reflecting the value of the collateral compared to the borrowed funds. A higher ratio increases the likelihood that the lender can recover their funds, even if the market declines.
Six of the seven involved assets saw an increase of 10%. For example, NEIRO’s ratio was raised from 30% to 40%, whereas TURBO’s was lifted from 10% to 20%. SUI is the only one witnessing a 5% hike and will be set at 60%. The amendments will come into effect on November 1.
Binance added that the collateral ratio will affect the Unified Maintenance Margin Ratio (uniMMR). It warned users to closely monitor uniMMR to avoid any potential liquidation or substantial losses that may result from the change.
Previous Binance Updates
The company conducted numerous other amendments this month, some focusing on trending meme coins. Last week, it launched 1000CATUSDT perpetual contracts on its futures platform, which allows up to 75x leverage and supports the multi-assets mode. Somewhat expected, the cat-themed meme coin Simon’s Cat (CAT) experienced a notable resurgence shortly after the announcement, rallying by 65% daily.
Later on, Binance said it will delist Rupiah Token (IDRT), Keep3rV1 (KP3R), Ooki Protocol (OOKI), and Unifi Protocol DAO (UNFI) on February 6, 2025.
Removing cryptocurrencies from such a major exchange leads to a reduced liquidity, diminished credibility, and negative sentiment from industry participants. As such, it was no wonder that the prices of the affected altcoins crashed by double digits after the disclosure. UNFI suffered the most, with its valuation plummeting by over 40%.
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