Outside Source
TL;DR
- Binance added two new cryptocurrencies to its platform, causing a substantial price rally for the affected ones.
- However, those were listed with seed tags, meaning users should be increasingly cautious when entering the ecosystem.
The Price Boost
Binance announced the listing of the altcoins Cow Protocol (COW) and Cetus Protocol (CETUS). The newly introduced trading pairs include COW/USDT and CETUS/USDT, and clients can now start depositing. Withdrawals will be available from November 7.
Trading Bots & Spot Copy Trading services will be enabled on the same day. “For users with running Spot Copy Trading portfolios, pairs can be included by enabling them in the [Personal Pair Preference] section of the Spot Copy Trading settings,” the company clarified.
It is important to note that COW and CETUS were added with seed tags. Tokens in this category represent “innovative projects that may exhibit higher volatility and risks” than other listed assets. That said, users should pay extra attention and conduct proper due diligence before hopping on the bandwagon.
“COW and CETUS are relatively new tokens that pose a higher than normal risk and will likely be subject to high price volatility. Users must exercise sufficient risk management and DYOR (do your own research) to fully understand the project before opting to trade the token,” the warning reads.
Binance listings often have a boosting effect on the affected assets due to their increased liquidity, accessibility, and credibility. The latest case was no exception, with COW and CETUS briefly skyrocketing by over 70% on a 24-hour scale. In the following hours, their prices slightly retraced but remain well in the green zone.
The Previous Example
Earlier this week, the world’s biggest crypto exchange launched PONKE/USDT perpetual contracts. The offering enables up to 75x leverage and allows clients to use other assets (such as BTC) as margin.
PONKE – the affected Solana-based meme coin – saw its valuation soaring by 15% shortly after the disclosure. It pumped to over $0.50 before heading south in the following days. Its price, though, started climbing again on November 6 following the overall resurgence of the entire cryptocurrency sector caused by Donald Trump’s likely win in the US presidential elections.
This article first appeared at CryptoPotato
