In summary:
- Binance announced the delisting of 10 FTX tokens effective 31st March 2020.
- The exchange explained that the main reason for doing so was the lack of understanding on how the tokens work by many users.
- Almost immediately, Bitmax announced that it will be listing the 10 tokens delisted by Binance and 2 more.
In a sudden announcement a few days ago, the team at the crypto exchange of Binance announced that they would be delisting the 10 leveraged tokens of BULL, BEAR, ETHBULL, ETHBEAR, EOSBULL, EOSBEAR, BNBBULL, BNBBEAR, XRPBULL and XRPBEAR tomorrow, March 31st. All trading pairs linked to the tokens will also be delisted. The exchange explained that the delisting was as a result of users not understanding how the tokens work.
Bitmax Lists all 10 Tokens and Adds 2 More
Almost immediately, the crypto exchange of Bitmax announced that it was listing the 10 tokens dropped by Binance as well as adding 2 more: ALTBULL and ALTBEAR. Deposits and withdrawals of the tokens began yesterday, March 29th. Trading began today, March 30th.
How Bitmax Token (BTMX) Will Benefit
The quick removal of the leveraged tokens left many traders confused. Many wondered why Binance would do such a thing given they had invested heavily in FTX only a few months ago. With the decision now final, Bitmax and BTMX stand to benefit as shall be explained.
Firstly, the introduction of the 12 FTX tokens will rejuvenate Bitmax by bringing in dissatisfied traders of the tokens from Binance. Some might choose to trade on FTX, but those who will end up on Bitmax will increase the trade volume on the exchange thus benefiting the entire Bitmax ecosystem. The platform is currently ranked 54th on Coinmarketcap and according to 24-hour trade volume. This should improve as the popularity of the exchange increases due to the new listings.
Secondly, BTMX is the native token for the Bitmax ecosystem. The token is used to determine the tiered trading fee schedule of users based on their holdings. The more BTMX you hold, to less trading fees you pay according to the exchange’s fee schedule. The more traders migrate to the exchange with the new FTX tokens, the more they will hold BTMX to capitalize on the trading fee discounts.
Thirdly, the demand created from traders holding more BTMX will surely increase the value of the token as can be seen right now on Coinmarketcap.com. BTMX is currently trading at $0.04 and up 11.61% in 24 hours.
Summing it Up
In conclusion, the Bitmax exchange and BTMX stand to gain with the listing of the FTX tokens that Binance dropped only a few days ago. These tokens will bring in new traders as well as attract current Bitmax traders towards exploring their potential. Such actions will increase the exchange’s trade volume and facilitate the hodling of BTMX to attain trading fee discounts. Further checking Tradingview.com, the token is experiencing bullish momentum with some resistance at $0.044. Only time will tell if BTMX will regain past glory above 5 cents.
(Feature image courtesy of Tory Morrison on Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Crypto Gazette or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
