Binance to Delist USD-M Perpetual Contracts for XEM, ORBS, and LOOM
Binance announced the delisting of USD-M perpetual contracts for NEM #XEM, Orbs #ORBS, and Loom Network #LOOM. This decision aims to protect users from market risks while refining product offerings.
Impact on Market Confidence
The delisting will commence on December 9. Starting at 08:30 (UTC), new positions in these contracts will be unavailable. By 09:00 (UTC), all remaining open positions will be settled automatically. The delisting indicates reduced support from Binance, potentially affecting trading activity and market reputation for these tokens.
Following the announcement, XEM experienced a 7% drop, trading at $0.026, with recent lows at $0.02527. ORBS declined by 6% to $0.03301, while LOOM fell 4%, stabilizing at $0.07367. These price changes illustrate the crypto market's sensitivity to delisting news, where perceived liquidity reduction can trigger sell-offs.
This action follows Binance's previous delistings, including five tokens linked to Tether’s USDT #USDT, such as Gifto (GFT) and IRISnet (IRIS). Earlier, the exchange also delisted multiple Bitcoin trading pairs, causing significant sell-offs. Similar reactions occurred last month with tokens related to Algorand, DigiByte, and GMX.
Such decisions are part of Binance's strategy to align its offerings with user demand and prevailing market conditions. Traders are encouraged to assess their portfolios and consider the risks associated with less liquid assets.
Objectives of Token Delisting
Binance's delisting decision extends beyond trading metrics like volume and liquidity. It emphasizes risk reduction in volatile markets, particularly for tokens like XEM, ORBS, and LOOM, where liquidity may not meet volatility potential. Binance has prepared for market fluctuations by implementing measures such as adjusted leverage limits and revised funding rates.
These actions aim to facilitate a smooth transition during the delisting process, demonstrating Binance's commitment to innovation and financial stability for its community. Additionally, Binance often complements delistings with listings of promising tokens; recently, it added Sudeng (HIPPO) and X Empire Perpetual Contracts.