These Altcoins Crash by Double Digits After Binance Says Goodbye: Details Inside

The broader cryptocurrency market has enjoyed a solid revival lately, with numerous leading digital assets well in green territory today (April 17).

However, this is not the case for three lesser-known altcoins, whose prices nosedived after Binance announced certain amendments on its platform.

The Heavy Bleeding

The world’s largest cryptocurrency exchange conducted another analysis to ensure that all listed cryptocurrencies meet high standards and industry requirements. Among the main factors the company observes are the level and quality of development activity, trading volume, liquidity, regulatory requirements, community sentiment, and more.

Based on the most recent review, Binance decided to remove all services with Dego Finance (DEGO), DENT (DENT), and TrueFi (TRU). The amendment becomes effective on April 28, with the company clarifying that delisted tokens may be converted into stablecoins on behalf of users after April 30.

“Please note that the conversion of delisted tokens into stablecoins is not guaranteed. A separate notification will be made before the conversion where applicable, and the stablecoins will be credited to users’ Binance accounts after the conversion,” it added.

Additionally, Binance revealed it will not support the TrueFi (TRU) rebranding and token swap to Brila (BRLA). As usual, the disclosure had a negative effect on the involved cryptocurrencies, which all tumbled by double digits. DENT took the biggest blow with its price crashing by 24% on a daily scale.

DENT Price, Source: CoinGecko

This reaction is rather expected, since losing Binance support typically results in reduced liquidity, lower market visibility, and reputational damage for the affected assets.

The Previous ‘Binance Effects’

Earlier this month, the exchange announced that it would terminate all trading services with Beefy.Finance (BIFI), FunToken (FUN), FIO Protocol (FIO), Orchid (OXT), Measurable Data Token (MDT), and Wanchain (WAN) on April 23. Most of the involved tokens plunged by 20-25% after the news, while BIFI collapsed by 32%.

The situation was much similar in March when Binance delisted Arena-Z (A2Z), Ampleforth Governance Token (FORTH), Hooked Protocol (HOOK), Loopring (LRC), IDEX (IDEX), Neutron (NTRN), Solar (SXP), and Radiant Capital (RDNT). Back then, IDEX was the biggest loser, with a daily decline of roughly 33%.

It is important to note that showing support for a certain cryptocurrency usually has the opposite effect on its price. A month ago, Binance launched the trading pairs CFG/USDT, CFG/USDC, and CFG/TRY, causing CFG’s valuation to surge 60% within minutes. Prior to that, it caused substantial gains for Moonbirbs (BIRB) and ETHGas (GWEI) after introducing the BIRB/USDT and GWEI/USDT perpetual contracts with up to 50x leverage.