⚠️ Same token value, but much less borrowing power.
Binance has reduced the collateral ratio for AUCTION, BLUR, GALA, HYPER, S and SYRUP from 30% to 10%.
That means a trader holding $100,000 of an affected token would previously have $30,000 recognized as collateral. Under the new ratio, only $10,000 is recognized.
The market value of the tokens has not changed because of this rule, but their usefulness as margin collateral has dropped significantly.
Coinbase International Exchange is also set to remove 29 assets from its eligible-collateral list on September 29, including BNB, AVAX, ARB, ONDO, PEPE, SHIB and UNI.
For leveraged traders, these changes matter because lower collateral recognition can reduce borrowing capacity or margin cushion, depending on the account.
My trader view: this is something to watch closely, especially if your positions depend heavily on altcoin collateral.
Could tighter collateral rules create more pressure on leveraged altcoin traders?
#crypto #Binance #trading #altcoins
$XRP
Binance has reduced the collateral ratio for AUCTION, BLUR, GALA, HYPER, S and SYRUP from 30% to 10%.
That means a trader holding $100,000 of an affected token would previously have $30,000 recognized as collateral. Under the new ratio, only $10,000 is recognized.
The market value of the tokens has not changed because of this rule, but their usefulness as margin collateral has dropped significantly.
Coinbase International Exchange is also set to remove 29 assets from its eligible-collateral list on September 29, including BNB, AVAX, ARB, ONDO, PEPE, SHIB and UNI.
For leveraged traders, these changes matter because lower collateral recognition can reduce borrowing capacity or margin cushion, depending on the account.
My trader view: this is something to watch closely, especially if your positions depend heavily on altcoin collateral.
Could tighter collateral rules create more pressure on leveraged altcoin traders?
#crypto #Binance #trading #altcoins
$XRP
