- Binance lowers the collateral rates for 10 crypto tokens, reduces the credit capacity of the dealers and tightens the margin requirements.
- Nevertheless, most affected tokens have price gains, which should actually be a sign of their solidity.
Binance, a leading global cryptocurrency exchange, has An important updateannouncedwhich will affect traders who use their portfolio margin function. The stock exchange confirmed plans to reduce the collateral rates of ten certain cryptocurrencies, a step that is expected to have an impact on the trade strategies and the credit capacity of some users.
The changes will affect ten tokens: Dent, Enj, Need, Dash, CHZ, AXS, ENS, Sand, Theta and QNT. These assets will experience a reduction in your security rates within the portfolio margin system from Binance. This function enables users to compensate for profits and losses across several positions with a common margin balance.
According to the explanation of the platform, the reductions vary depending on the tokens. The collateral rate of dent is reduced from 65% to 55%, while EnJ and Dash are reduced from 70% to 55%. In need, the rate will drop from 75 % to 60 %. At CHZ, the rate is reduced from 80% to 65%. In other values - AXS, ENS, Sand, Theta and QNT – the odds are reduced from 80% to 70%.
This adaptation means that retailers who use these assets as security will have a lower credit capacity. As a result, your ability to keep or open foreign positions will be more restricted, provided that there are no additional security.
Why Linance lowers the collateral rates
Such changes are typically periodic and typical of security types, depending on the prevailing market conditions such as wealth fluctuations, sales activities and other liquidity factors. Lower odds indicate that a platform has downgraded the perceived risk or the liquidity of a financial value in its portfolio.
Binance explained that the update corresponds to its standard risk management practices. In addition, the change to the Unified Maintenance Margin Ratio (unimmr) will have an impact, a platform -wide key figure that helps to determine whether an account meets the minimum margin requirements. The stock exchange advised users to monitor their unimmric precisely in order to avoid liquidations, especially if the reduction of the quota endangers their positions.
Nevertheless, such changes were attributed by the stock exchanges to adequate trade tariffs, especially in a market that is characterized by price fluctuations. In addition, with the help of such a strategy, Binance seems to use the majority of its efforts to maintain the stability of the platform and the maintenance of the money of the customer in the event of risk.
Despite the update, token courses remain solid
While the announcement of Binance, as reported by CNF, caused concerns about the reduced commercial capacity, the cryptom market was resistant. Most affected tokens recorded price gains on April 12, which is due to the positive mood in the entire crypto sector.
Dent rose by 3 % to $ 0.0006567, enj increased by over 2 % and noted at $ 0.06690, and need rose by $ 1 % to $ 0.001882. Dash, on the other hand, recorded an increase of almost 2 % and closed a week at $ 20.69. ENS rose by a little more than 3% to $ 14.37, while sand increased by 0.5% to $ 0.2609. QNT also recorded an increase of 2.5% and reached the value of $ 65.77.
However, not all tokens are shared in the profits. CHZ, AXS, and theta recorded marginal losses, which reflects mixed reactions from market participants according to the news.
Market outlook before adjusting the hedging
Various customers are ready to check their portfolio management plans in order to meet the new requirements in relation to collateral by April 18. This can lead to short -term position shifts in external -financed dealers, especially among those who use these assets for margin trading.
The market participants will continue to observe these tokens in order to recognize any rashes based on the changes that could lead to extensive compulsory liquidations due to a change in the collateral values.
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