Binance’s update at leverage and margin levels led to sudden liquations in the crypto market and sharp price decreases in a short time. It was observed that the amendment caused more than fifty percent decrease in Memecoin Act, especially in Solana -based.
Evaluation of Effects and Criticism
After the update, some other crypto currencies traded in Binance also reportedly lost a double -digit. Dexe and DF, respectively 23 percent and 16 percent decreased, respectively, was expressed. It is thought that large sales orders play a role in the transactions in a short time.
Investors began to question the effects of the regulations in the system after the positions that were damaged due to these sudden sales movements. The increase in the market volume seems to have increased the speed and effect of the movement.
Benson Sun: “The number of positions to be closed before changing the rules should have been evaluated.”
Evgeny Gaevoy, CEO of Wintermute, stated that the reaction to market movements took place after the update, while he said he did not accept responsibility.
Evgeny Gaevoy: “Response to market movements, began after the change has been implemented.”
Binance’s margin levels update, continuous contracts on the effect of the effect. Within the scope of this situation, the current positions are said to have a sudden risk of liquid. An investor reportedly suffered millions of dollars damage due to a decrease in ACT Token price.
On the other hand, it is trying to understand that some crypto currencies have recovered in the current market conditions. The rise in various tokens such as Compound created a partial recovery expectation in the market. It is emphasized that investors should reconsider their positions against sudden price changes.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
