Binance, which is the world’s biggest cryptocurrency exchange, has announced that it will remove certain trading pairs. This update will have an impact on many people who trade smaller cryptocurrencies called altcoins. One of the cryptocurrencies affected by this change is Cardano (ADA). On December 30, the price of Cardano dropped by 3.5%.
What Trading Pairs Are Being Removed?
On January 6, Binance will stop offering some types of trading pairs. These include:
- BCH/FDUSD
- TAO/FDUSD
- AVAX/FDUSD
- LTC/FDUSD
- SUI/FDUSD
- ADA/FDUSD
- LINK/FDUSD
In addition to cross-margin pairs, Binance will also remove similar pairs from isolated margin trading. If you don’t know what these terms mean, they’re different ways to borrow money for trading, using your assets as collateral. After January 6, users won’t be able to manually transfer these pairs into their isolated margin accounts. If someone owes money for these assets, they can only transfer enough to cover what they owe.
Why Is This Happening?
All the trading pairs being removed involve a stablecoin called First Digital USD (FDUSD). Stablecoins are cryptocurrencies that try to maintain a stable value, similar to traditional currencies like the U.S. dollar. Binance has not explained why they’re removing these pairs.
The cryptocurrencies linked to these pairs didn’t show big price changes after the announcement. Usually, when a coin gets listed on an exchange or fully removed, its price reacts more strongly.
Other Updates from Binance
About a week ago, Binance made another update that affected Cardano and other coins. They opened new trading pairs, including ADA/USD1, ASTER/USD1, LUNA/USDC, LUNC/USDC, and ZEC/USD1. However, these pairs cannot be traded by users in certain countries like the United States, Canada, Cuba, and Iran.
After this news, Cardano’s price went up by 4%, and ASTER saw a price increase of 3.5%. LUNA surprised traders with even bigger gains, showing a double-digit rise in value.
Binance’s History of Delisting Coins
This isn’t the first time Binance has removed coins from its platform. At the beginning of December, Binance delisted StaFi (FIS), REI Network (REI), and Voxies (VOXEL). When that happened, the prices of those cryptocurrencies dropped.
Earlier in October, Binance also stopped all services related to Flamingo (FLM), Kadena (KDA), and Perpetual Protocol (PERP). Kadena had the most shocking reaction, with its price crashing about 30% following the announcement.
Changes like these matter to cryptocurrency traders because they affect where and how people can buy or sell certain coins.
Key Terms Explained
- Cardano (ADA): A cryptocurrency and blockchain platform that uses proof-of-stake technology, where holders of the coin help run the network.
- Binance: The largest exchange for buying and selling cryptocurrencies, based on trading volume.
- Altcoin: Any cryptocurrency other than Bitcoin, such as Ethereum or Cardano.
- Stablecoin: A cryptocurrency designed to maintain a fixed value, often tied to a fiat currency like the U.S. dollar.
- Proof-of-stake: A method used by some blockchains, like Cardano, where users validate transactions based on how many coins they own.