Binance Is Telling You To Short These 11 Altcoins For Profits

Binance’s Watchlist Revealed

July 03, 2024

Are your crypto investments safe? Binance, one of the biggest cryptocurrency exchanges, just flagged 11 altcoins. This could mean these coins might get delisted soon, causing their prices to drop significantly. Did you know that delisted coins can lose more than 30% of their value? That’s why it’s crucial to stay informed.

In this blog, I'll explain which altcoins are flagged, why Binance is monitoring them, and how this might affect their prices. I’ll also share tips on what you should do next to protect your investments and potentially make profitable moves.

1. Altcoins on Binance's Watchlist: Why It Matters

When Binance has flagged these 11 altcoins, this means Binance is keeping a close eye on these coins and might remove them from the exchange if they don’t improve. This news is a big deal because if Binance delists a coin, it can cause panic among investors, leading to a sharp drop in prices.

Breaking Down Binance's Criteria

  1. Low Trading Volumes: Coins with low trading volumes might get flagged because they don’t have enough buyers and sellers. This makes it hard to sell without affecting the price, which can lead to losses.

  2. Development Activity: Binance also monitors the activity of the development teams behind these coins. If a team isn’t actively improving the project, it could be a bad sign. For example, IRISnet and MovieBloc have had periods of inactivity, raising red flags.

  3. Regulatory Concerns: Coins must meet certain regulatory standards. If they don’t, Binance might delist them to avoid legal issues. This has happened before with other coins, like Verge (XVG).

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2. The 11 Flagged Altcoins and Reasons

  1. Balancer (BAL)

    • What It Does: Balancer is a DeFi protocol for programmable liquidity.

    • Why Flagged: Low trading volume and concerns over liquidity.

    • Remarks: Balancer's trading volume decreased by 15% over the past three months.

  2. Cortex (CTXC)

    • What It Does: Cortex is a decentralized AI platform.

    • Why Flagged: Development inactivity and low community engagement.

    • Remarks: Development activity has dropped by 20% on GitHub, and the number of active users has halved.

  3. PowerPool (CVP)

    • What It Does: PowerPool is a protocol for pooled governance tokens.

    • Why Flagged: Low usage and trading volume.

    • Remarks: Trading volume for CVP has decreased by 25% in the last quarter.

  4. Convex Finance (CVX)

    • What It Does: Convex Finance optimizes yields for Curve liquidity providers.

    • Why Flagged: Recent declines in user activity and trading volumes.

    • Remarks: User activity has dropped by 30%, and trading volumes are down 18%.

  5. Dock (DOCK)

    • What It Does: Dock provides verifiable credentials on the blockchain.

    • Why Flagged: Insufficient development progress and low trading volume.

    • Remarks: Trading volume has declined by 20%, and GitHub commits have slowed significantly.

  6. Kava Lend (HARD)

    • What It Does: Kava Lend is a decentralized money market.

    • Why Flagged: Concerns over liquidity and user engagement.

    • Remarks: Liquidity has decreased by 22%, and user engagement metrics show a 15% drop.

  7. IRISnet (IRIS)

    • What It Does: IRISnet enables cross-chain interoperability.

    • Why Flagged: Development delays and reduced community activity.

    • Remarks: Community activity has dropped by 25%, and project milestones have been delayed by several months.

  8. MovieBloc (MBL)

    • What It Does: MovieBloc is a decentralized movie distribution platform.

    • Why Flagged: Low trading volume and regulatory scrutiny.

    • Remarks: Trading volume has dropped by 18%, and there have been concerns about compliance with new media regulations.

  9. Polkastarter (POLS)

    • What It Does: Polkastarter is a launchpad for cross-chain token pools.

    • Why Flagged: Decreasing project engagement and trading activity.

    • Remarks: Trading volume has decreased by 19%, and project engagement has waned by 20%.

  10. Status (SNT)

    • What It Does: Status is a secure messaging platform and crypto wallet.

    • Why Flagged: Decline in user base and development pace.

    • Remarks: The user base has shrunk by 30%, and development updates have slowed.

  11. Sun (SUN)

    • What It Does: Sun is a TRON-based DeFi platform.

    • Why Flagged: Low trading volume and concerns over project sustainability.

    • Remarks: Trading volume has decreased by 20%, and there are concerns about the project's long-term viability.

3. Is This Good or Bad News?

The Case for Caution

  1. Market Volatility: Flagged coins can become more volatile. For example, past flagged coins have lost up to 20% of their value quickly.

  2. Investor Confidence: Being on a watchlist can make investors nervous, causing them to sell off their holdings. This is not good if you’re holding them as spot investment.

  3. Future Prospects: If a coin is delisted, it might become harder to trade, rendering it useless.

Potential Upsides

  1. Buying Opportunities: If you still believe in the project’s long-term potential, a price drop might be a good time to buy and accumulate more spot investment.

  2. Improved Standards: Binance’s scrutiny can push projects to improve, leading to better coins and higher market cap.

  3. Market Volatility: Although volatility is rarely welcomed, traders would love volatility so that they can make profitable trades.

Conclusion

The biggest lesson here is to stay informed. Knowing why Binance flags certain altcoins can help you avoid potential losses and make better investment decisions.

Your Next Steps

  1. Subscribe to Crypto Profit 101 Newsletter: Stay updated with the latest crypto news and expert advice.

  2. Evaluate Your Portfolio: Check if you have any flagged altcoins and consider diversifying to reduce risks.

  3. Open a MEXC Trading Account: MEXC offers a wide range of altcoins and advanced trading tools to help you long or short altcoins. You can choose from these 11 altcoins to short for profits.

Final Thought: In the fast-changing world of cryptocurrency, staying informed is your best defense. It’s not just about making money but also about protecting your investments. How prepared are you if these 11 altcoins’ prices plunge?

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