These Altcoins Crash Hard as Binance Ends Support: Here’s What Happened

TL;DR

• Binance will delist three cryptocurrencies, whose price tumbled substantially after the disclosure.
• The exchange recently warned of phishing scams involving fake support calls, briefly paused futures trading due to a technical issue, and added support for WLFI across multiple services.

The Binance Effect

The world’s leading crypto exchange periodically reviews each digital asset listed on its platform and removes those failing to meet certain criteria, such as the team’s commitment to the project, the level and quality of development activity, the stability and safety of the network, trading volume and liquidity, and more.

Based on its most recent observation, Binance decided to cease all spot trading pairs involving BakerySwap (BAKE), Hifi Finance (HIFI), and Self Chain (SLF). The actual delisting is scheduled for September 17, while Binance Spot Copy Trading will remove the pairs above on September 10. 

“The spot trading pair(s) of the aforementioned token(s) will be removed. All trade orders will be automatically removed after trading ceases in each respective trading pair,” the company explained. 

Additionally, Binance made it clear that deposits of these tokens will not be credited to users’ accounts after September 18, whereas withdrawals will not be supported after November 17.

Such announcements usually have a negative effect on the affected cryptocurrencies due to factors like decreased liquidity, diminished availability, and reputational damage.

This case was no exception, with BAKE plummeting by 26% to around $0.05, thus reaching its lowest point since the beginning of 2021. HIFI collapsed by 22%, while SLF headed south by 23%.

Besides terminating all trading services with those tokens, Binance revealed it will remove the spot trading pairs BABY/EUR, BABY/FDUSD, BMT/BNB, and THE/FDUSD on September 5. The effort had little to no impact on the prices of the involved cryptocurrencies, which remain near yesterday’s levels.

Latest Binance Developments

Last week, the exchange alerted its users about a dangerous scam where attackers make fake support calls that deceive people into changing their application programming interface (API).

“What feels like a routine safety check quickly turns dangerous. By adjusting those settings, victims unknowingly hand over the keys that let scammers drain funds straight into their own wallets,” the warning reads.

Binance’s CEO Richard Teng addressed the matter on his personal X account and assured that the company will never ask its users for their passwords or credentials over the phone.

Just a few days later, the entity temporarily paused all futures trading services due to a technical issue. The disruption lasted less than an hour before operations were fully restored.

Binance was also among the trading venues showing support for WLFI, the cryptocurrency of World Liberty Financial, which saw the light of day earlier this week. It added the asset to its Binance Simple Earn, “Buy Crypto,” Binance Convert, Binance Margin, and Binance Futures programs and opened trading for the WLFI/BRL and WLFI/EUR pairs.

Despite the backing and the initial pump, WLFI’s price headed south shortly after launch and is currently trading at around $0.22, representing a 9% decline on a daily scale.