Important Trading Services Updated by Binance Affecting Three Altcoins

Binance has stopped allowing new positions on the perpetual contracts for KDA/USDT, AXS/USD, and THETA/USD. This action occurred on November 3, leading to notable drops in the prices of these altcoins.

The Impact of Binance’s Decision

The official announcement states that Binance Futures will close all positions on the KDA/USDT contract on November 6, followed by action on the AXS/USD and THETA/USD contracts the next day. Users are advised to settle existing positions before these changes.

“To safeguard users and mitigate potential risks associated with volatile market conditions, Binance Futures might implement additional protective measures regarding the indicated contracts without prior announcement,” the statement highlights.

Following this news, Kadena (KDA) saw its price plummet to $0.03, marking a 22% decline in one day. Concurrently, Axie Infinity (AXS) and Theta Network (THETA) dropped by 9% and 8%, respectively.

KDA Price Source: CoinGecko

Previous Actions by Binance

Historically, trading terminations by Binance cause heightened volatility. Just last week, Binance announced plans to delist KDA, FLM, and PERP, leading to a 30% reduction in KDA’s price at that time. This trend illustrates the profound effect Binance’s support has on cryptocurrency liquidity and perception.

In recent months, Binance has introduced high-leverage trading options, impacting altcoin valuations positively, but halting support has contrary effects and places pressured visibility on the titles involved.