Why Did
$CHESS Pump After Binance Delisting News?
At first glance, a delisting announcement sounds extremely bearish for any cryptocurrency. When Binance announced that
$CHESS would be removed from its exchange, most traders expected the price to crash. Instead, the token experienced a sharp short-term pump.
This kind of reaction may seem illogical, but in crypto markets, it is actually quite common due to trader psychology and market structure.
One of the main reasons is a short squeeze. After negative news, many traders open short positions, betting that the price will fall. If the price unexpectedly starts rising, these traders are forced to buy back their positions to limit losses. This sudden wave of forced buying pushes the price even higher, creating a rapid pump.
Another key factor is low liquidity. Compared to major cryptocurrencies,
#CHESS has much lower trading volume. In low-liquidity markets, even a small number of large buy orders can move the price significantly. If whales or large traders begin accumulating after the panic sell-off, the price can spike quickly.
There is also the effect of volatility trading. Many traders do not care whether the news is good or bad — they trade the price swings.
A delisting announcement creates fear, uncertainty, and sharp price movement. Short-term traders enter to profit from this volatility, which can temporarily drive the price upward.
It is also important to note that delisting does not mean the token becomes worthless overnight.
$CHESS can still be traded on other exchanges after being removed from Binance.
Some investors see the post-news dip as an “oversold” opportunity and buy at discounted prices, adding short-term demand.
In summary, the pump in
#CHESS after the delisting news was driven by a short squeeze, low liquidity, speculative trading, and market psychology. These moves are usually short-lived, and once the hype fades, the price often returns to its broader trend. This is why risk management is critical when trading around delisting events.