Binance goes all-in with COMP futures

Binance goes all-in with COMP futures

I Earned $20,390 On Binance Futures Trading IN 20 MINUTES

Contents

Binance goes all-in with COMP futures
CONTENT

  • Binance Adds Support For COMP Futures With 50x Leverage.

  • Many were outraged by the acceptance of such risks, since the new altcoin just started trading on the market..

  • Exchanges learn poorly from past mistakes.

Binance goes all-in with COMP futures

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Binance adds support for DeFi futures Decentralized finance (DeFi) – this is financial services, built on blockchain technology, which offer users access to open, efficient and … More Currency Compound (COMP) with 50x leverage. Many believe this new altcoin has not yet passed the test of time to tolerate this level of risk..

Compound (COMP) cryptocurrency hit the market just a few weeks ago. However, this did not prevent her from arranging a stellar ascent as the most popular speculative asset. In the wake of the hype, it broke into 23rd place in the list of leading cryptocurrencies, increasing its market capitalization to $ 600 million.

Earlier, the editorial staff of BeInCrypto already said that the current boom in the decentralized finance (DeFi) segment was largely due to the launch of two new DeFi coins, including Compound..

50x leverage

It is not surprising that such a stir could not fail to attract the attention of many crypto exchanges. Perhaps the very fact of launching futures for a new currency would not have attracted increased attention of the crypto community, if not for the amazing size of the proposed leverage..

Many felt that this was a clear overkill for the coin, which has been trading on the market only since June. According to some Twitter users, 20x leverage would be sufficient.

Binance has long been known for its propensity to add support for new altcoins with overly high risks. Perhaps now the management of the exchange decided in this way again to compete with its long-standing rival – the FTX trading platform, where, as noted by members of the crypto community, the COMP currency has been trading for about ten days.

As a reminder, Binance delisted FTX credit tokens this spring, declaring them unreliable, and soon after that launched its own similar tools..

Can’t keep up with the news and behind-the-scenes games of the leading crypto exchanges? Join the discussion in our Telegram channel – and you will find out everything!

Too much risk

Unfortunately, Binance is not alone in admitting unverified currencies to margin trading. One of the classic examples is the story of the Poloniex exchange, which admitted to trading an unknown and illiquid token. As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More CLAMS. As a result, the management of the exchange had to face the consequences of the flash crash and pay the affected clients about $ 20 million.

Binance goes all-in with COMP futures

Binance itself already experienced a collapse in the MATIC rate in December 2019, which collapsed by about 70% in less than an hour. After this story, the currency was excluded from the list of assets allowed for margin trading.

Now the situation with the Compound rate that has risen on the hype also requires close attention and caution, especially when the exchange began to offer trading this currency with a 50x leverage.

Moreover, as the BeInCrypto editors have already warned, such an explosive growth in the DeFi segment is unlikely to be sustainable and stable, and after the peak of the HYIP currency, as a rule, a rollback begins.

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