Important Binance Update Affecting Various Meme Coins: Details
TL;DR
- Binance will raise the collateral ratios for several cryptocurrencies, including Floki Inu (FLOKI) and Dogs (DOGS).
- The company introduced new trading pairs for DOGS, possibly contributing to the meme coin’s solid performance last week.
The Latest Update
The world’s largest crypto exchange will amend the collateral ratio for several altcoins, such as some trending meme coins like Floki Inu (FLOKI) and Dogs (DOGS). The update is scheduled for September 3 and will take approximately one hour.
The collateral ratio for FLOKI will be raised to 40% from the current 35%. DOGS will witness an even more substantial increase: from 10% to 30%.
Other cryptocurrencies whose ratios will go up from tomorrow (September 3) include Toncoin (TON), Render (RENDER), Sun Token (SUN), SuperRare (RARE), and AdEx (ADX).
“Collateral ratio will affect the Unified Maintenance Margin Ratio (uniMMR). Users should monitor uniMMR closely to avoid any potential liquidation or losses that may result from the change of collateral ratio,” Binance added.
The collateral ratio in crypto refers to the proportion of insurance that must be provided to secure a loan or maintain a position. It is typically shown as a percentage and indicates how much the collateral is worth in comparison to the amount borrowed. A higher ratio provides greater assurance that the lender will be able to recover the borrowed funds even if the market conditions change unfavorably.
The Previous Amendments
Binance unveiled several other meme coin-related initiatives in the past month. For instance, it added BONK/BRL as a new trading pair on Binance Spot.
The popular meme coin Bonk Inu witnessed little to no volatility following the announcement, but this was not the case in December 2023. Back then, Binance officially listed the token on its platform, while the price rallied to an all-time high.
Last week, the exchange expanded the list of offerings on Binance Spot by adding DOGS/BRL and DOGS/USDC. It also allowed trading bot services for the pairs.
DOGS is a relatively new meme coin built on the TON blockchain. It saw the light of day toward the end of August and quickly became one of the sector’s sensations with its market cap rising above $800 million. However, it lost momentum and the figure currently stands at less than $600 million.
DOGS is worth around $0.001118 as of now, representing a 30% decline from the all-time high registered on August 28.
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