One of the biggest cryptocurrency exchanges in the world, Binance, has announced the elimination of a number of trading pairings, including Cardano’s ADA/BIDR combination. The alteration is scheduled to go into effect on September 8 and has left some questioning “why this, why now?”
Let’s start by taking a look at the market. According to the most recent statistics, Cardano (ADA) is now trading at about $0.256. Although not gloomy, it also isn’t exactly making the world explode. Could this be the reason it was taken off Binance? No chance.
Liquidity, or more specifically, its lack, offers a more tenable explanation in this case. Trading pairs with insufficient trading volume are frequently removed from exchange lists. Simply said, it’s a commercial decision. Low liquidity increases the risk of price manipulation and detracts from the trading pair’s appeal to both the exchange and its customers.
Let’s not focus on Cardano, though. The large list of trading pairings that will shortly be discontinued includes, among other things, the assets AUDIO/BUSD, BAT/BUSD, and MATIC/BIDR. In excellent (or should we say bad? ) company is Cardano.
What does this signify for the future of Cardano, then? Well, it’s only a glitch, nothing to worry about. Cardano has made progress in terms of technological acceptance. It boasts a strong crew and a devoted, non-speculative community. There is no cause for concern regarding this delisting.
The removal of the ADA/BIDR trading pair by Binance was probably motivated by liquidity. It serves as a reminder that not all that glitters in the world of cryptocurrency is gold, or in this case, not all trading pairs are profitable or even secure to use.
