u.today
Binance, one of the world's leading crypto exchanges, has announced the removal of several trading pairs, including Cardano's ADA/BIDR. The change is set to take effect on Sept. 8, and it has gotten people wondering: why this, why now?
First off, let's take a look at the market. As of the latest data, Cardano (ADA) is trading at approximately $0.256. While not dismal, it is not exactly setting the world on fire either. Could this be a reason for its removal from Binance? Not likely.
Binance will remove the following spot trading pairs and cease trading on September 8, AUDIO/BUSD, BAT/BUSD, BSW/BUSD, CITY/BUSD, CVX/BUSD, FORTH/BUSD, JUV/BUSD, MOB/BUSD; OGN/BUSD, OMG/BUSD, PLA/BUSD, POLS/BUSD, REI/BUSD, RSR/BUSD, SCRT/BUSD, TVK/BUSD; 17:00: ADA/BIDR,…
— Wu Blockchain (@WuBlockchain) September 6, 2023
The more plausible explanation here is liquidity — or, rather, the lack of it. Exchanges often delist trading pairs that are not generating enough trading volume. It is a business move, pure and simple. Low liquidity can lead to price manipulation and makes the trading pair less attractive for both the exchange and its users.
But let's not single out Cardano. The list of soon-to-be-axed trading pairs is long and includes other assets like AUDIO/BUSD, BAT/BUSD and MATIC/BIDR, among others. Cardano is in good (or should we say, bad?) company.
Now, what does this mean for Cardano's future? Well, it is a hiccup, not a death sentence. Cardano has been making strides in technological advancements and adoption. It has a robust team and a community that is passionate, not just speculative. This delisting is not something that you should be worried about.
Binance's decision to remove the ADA/BIDR trading pair is most likely a liquidity-driven move. It is a reminder that in crypto, not everything that glitters is gold — or, in this case, not every trading pair that exists is profitable or even safe to utilize.