Unexpected Altcoin Soars by 35% Daily Following Support From Binance: Details

TL;DR

Binance launched the CHESS/USDT perpetual contract, which was followed by a 35% price increase for the involved asset.Tokens like Toncoin (TON) and Syscoin (SYS) have also experienced significant price movements following support from the exchange in the past month.

The Surprising Gainer

The world’s largest crypto exchange expanded the list of trading choices offered on Binance Futures by launching the CHESS/USDT perpetual contract. The option allows up to 75x leverage and supports the so-called “multi-assets mode.”

“Multi-assets mode allows users to trade the aforementioned CHESS/USDT perpetual contract across multiple margin assets, subject to the applicable haircuts. For example, when the Multi-Assets Mode is activated, users can use BTC as margin when trading the aforementioned perpetual contract,” the company explained.

Perpetual contracts enable traders to speculate on the price of a specific cryptocurrency without actually owning it. They have certain specifications, including no expiration date, meaning users can hold their positions indefinitely. These contracts have the potential for high returns, but they also come with increased risk.

Cryptocurrencies often see their prices heading north following support by a major exchange like Binance due to improved liquidity, additional visibility, and increased credibility. Transchess (CHESS) was no exception, with its valuation spiking by 35% on a daily scale. Earlier today (August 29), it crossed $0.22, the highest level in four months.

CHESS Price, Source: CoinGecko

The Binance Effect in the Past

Earlier this month, the exchange embraced Toncoin (TON) by introducing the following trading pairs to users: TON/BTC, TON/USDT, TON/FDUSD, and TON/TRY. The token’s price reacted positively, rising by 10% and reaching $6.40. 

TON continued the uptrend, briefly surpassing $7 in mid-August before tumbling to nearly $5 a few days ago. Its price started retreating immediately after Telegram’s founder and CEO, Pavel Durov, was arrested in France. TON recovered some of the losses in the next few days and currently trades at around $5.60 (per CoinGecko’s data).

Another altcoin that experienced a substantial uptick after support from Binance is Syscoin (SYS). Its value exploded by 60% on August 19 following the firm’s decision to allow the SYS/USDT perpetual contract, which enables a maximum leverage of up to 50x.

However, the rally was short-lived, with the asset plunging by 45% from its local top and currently hovering at approximately $0.11.