Alpaca Finance token experienced a significant surge this week, reaching a high of $0.227, the highest level since April 8.
ALPACA (ALPACA) rose by over 252% from its lowest point this year, making it one of the top-performing coins of the week. Its market cap climbed to over $37 million, while its 24-hour trading volume spiked to $142 million.
The token’s surge followed the listing of its perpetual futures on Binance, the largest centralized exchange in the industry. This listing potentially exposed the token to over 216 million users on the platform.
In addition to Binance, WhiteBit, a partner of FC Barcelona, also listed Alpaca Finance’s perpetual futures. According to WhiteBit’s website, it recorded a 24-hour trading volume of over $6.5 million.
Alpaca Finance is one of the top Decentralized Finance dApps in the BNB Smart Chain ecosystem with over $55 million in funds deployed across its V1 and V2 networks. It is an alternative to AAVE (AAVE) that lets people borrow and earn rewards.
It is common for altcoins to see substantial gains following their listing on major exchanges like Binance and Coinbase.
Alpaca token gets overbought Alpaca token price | Source: TradingView Alpaca’s price surge coincided with the convergence of two lines forming a falling wedge pattern, a technical setup that typically signals further upside potential.
The token broke above the key resistance level at $0.1940, the highest point on June 5, and surpassed both the 200-day and 50-day moving averages. This move indicates that bullish momentum is currently strong.
Alpaca reached a high of $0.2778, aligning with the weak, stop & reverse level of the Murrey Math Lines tool.
However, there are signs that it has gotten highly overbought. The Relative Strength Index rose to the extremely overbought point at 86 while the Money Flow Index indicator moved to 97.
While these overbought conditions reflect strong bullish momentum, they also suggest that a sharp reversal could occur as the initial excitement from the exchange listings fades. If a pullback happens, the key reference level to monitor would be $0.1940, which aligns with the major support/resistance pivot point of the Murrey Math Lines.
Alpaca Finance’s ALPACA price is up 422% in less than eight hours today, jumping from $0.181 to $0.950. To everybody’s surprise, this altcoin suddenly dropped 92% on Tuesday, leading to speculation that another crypto ‘cabal’ or holders were offloading their tokens simultaneously.
Why is ALPACA Price Up 422%? Alpaca Finance’s website claims it is the “largest lending protocol allowing leveraged yield farming on BNB Chain and Fantom.” However, the token dropped more than 92% in a single four-hour candlestick on April 29. In an interesting turn of events, the ALPACA price is up 422% in just seven hours, climbing from $0.181 to $0.950. This sudden rally has caught investors off guard.
ALPACA/USDT Chart Due to the sudden collapse, many compared Alpaca’s altcoin condition to that of OM, another cryptocurrency that suddenly dropped more than 90% a few weeks ago. Even before this announcement, Binance announced plans to delist ALPACA.
Many crypto KOLs and investors speculate that the 422% rally is mainly due to the Binance delisting, which will take place on May 2.
ALPACA/USDT 1-hour chart Alpaca’s 90% Crash and 422% Rally Timeline Here’s the exact timeline of events surrounding Alpaca Finance’s ALPACA token’s 90% crash and 422% rally.
April 24 – Binance Announces Delisting Plans.
Binance announces on April 30 plans to delist 4 tokens, including Alpaca. This caused a short-term, volatile movement that crashed ALPACA price by 52% on the same day. The same day, this altcoin soared 171% and set a high of $0.105. April 25 – Accelerated Settlement Induces Long-Short Competition
Due to the delisting announcement, competition between bulls and bears erupted, pushing the ALPACA token to clock in 245% gain on April 25. April 26 – ALPACA Price Doubles Anticipating Delisting
The April 25th rally continues, pushing Alpaca Finance’s token to double in value from $0.155 to $0.347. April 27 – 29 – Sustained Downtrend
For the next three days, the ALPACA token continued its downtrend despite attempts from buyers to sustain the uptrend. On April 29, Binance announced adjustment to funding rate due to the massive rally and crashes. i.e., Binance raised the funding rate cap to ±4%. April 30 – Today
Today ALPACA price shot up 422% from a low of $0.181 to $0.950. Investment disclaimer: The content reflects the author's personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Check out what could have propelled the staggering upswing.
TL;DR
Alpaca Finance (ALPACA) saw an unexpected 2,300% price surge despite Binance announcing its delisting. Despite the major rally, traders should tread carefully since the RSI has entered overbought territory at a ratio of 93. The Gigantic Surge The cryptocurrency market is an unusual place, and it is not rare for certain tokens to experience triple or even quadruple price increases in a short period of time.
Such is the case with Alpaca Finance (ALPACA), whose valuation exploded by roughly 2,300% in the last week. As of this writing, it trades at around $1.08 (per CoinGecko’s data), the highest level since the end of 2021.
ALPACA, Source: CoinGecko Its explosive growth could be viewed as a surprise, considering that Binance decided to terminate all trading services with ALPACA several days ago. The actual delisting is scheduled for May 2, and initially, the news triggered a double-digit price decline for the asset. After all, such action reduces the liquidity and visibility of the affected token and damages its reputation. So, nothing out of the blue, right?
What followed, though, was rather unexpected and, according to several posts on X, could be attributed to a “short squeeze.” After the delisting announcement, many traders supposedly opened short positions, anticipating a substantial price decline for ALPACA. As mentioned, such a drop indeed transpired, but only briefly, and the subsequent rally might have caused major damage.
This, in turn, led to a short squeeze, where traders who had opened short positions, expecting the price to go south, were forced to buy back tokens to avoid further losses and liquidations, which pushed the asset further upwards.
It’s important to note that a substantial price decline often follows a short squeeze as the forced buying eventually ends, and there’s little demand left to sustain the inflated valuation. This, combined with profit-taking by traders, typically intensifies the subsequent downward.
You may also like: Binance Makes a New Push to Secure EU Approval Pushing Back at Reuters: Inside Binance’s Fight for Its European Future Analyst Identifies 3 Altcoin Sectors Positioned to Survive Market Shakeout Another factor potentially contributing to the rally is the burning program Alpaca Finance has adopted. The project has completed 214 weekly buyback and burn events, cumulatively removing almost 35 million ALPACA tokens from circulation, representing approximately 18.6% of the maximum supply.
Fundamental principles of economics dictate that reduced supply, combined with steady or increasing demand, pushes prices higher.
Traders Should be Careful One important element suggesting that ALPACA’s pump might be abruptly suspended in the short term is the Relative Strength Index (RSI). The momentum oscillator, which measures the speed and magnitude of recent price changes, varies from 0 to 100.
Readings above 70 indicate the cryptocurrency has entered overbought territory and could be headed for a pullback. Data shows that ALPACA’s RSI has soared to 93, signaling a bearish scenario.
Despite the news that Binance will delist the token on May 2, Alpaca Finance shocked the cryptocurrency market with a 1,100% price increase in the last week.
Binance announced on Apr. 24 that it would remove ALPACA and three other tokens from its platform following a routine evaluation. The exchange cited factors such as low trading volume and developer inactivity. ALPACA spot trading pairs will be disabled on May 2, while deposits and withdrawals were phased out in the days after the announcement.
Normally, tokens drop in value after delisting news, but ALPACA did the opposite. After briefly declining in response to the news, ALPACA surged by as much as 2,300% in just a few days, jumping from $0.029 to a peak of $1.47, a 60x increase on some trading pairs. ALPACA is now trading at $0.53, down 40% in 24 hours but still up 1,100% over the past week, as per CoinGecko data.
The rally appears to have been driven by a short squeeze. After the delisting news, many traders opened short positions expecting the price to collapse. However, they were forced to buy back the token to cover losses when ALPACA unexpectedly surged, which caused the price to rise even further.
The squeeze was further tightened when Binance modified its funding rates. The funding cap was increased from ±2% to ±4%, and settlement intervals were reduced from four hours to one hour, which resulted in higher costs for short sellers. This made holding bearish positions expensive and risky.
Meanwhile, ALPACA’s supply tightened. A supply shock was caused by the team’s suspension of new token issuance and the burning of about 35 million tokens, or 18.6% of the maximum supply.
Some on-chain observers suspect market manipulation. Positions totaling more than $50 million, including $43 million from short sellers, were liquidated. It’s possible that coordinated whale activity contributed to price increases which caught leveraged traders off guard.
The situation was likened to the Gamestop short squeeze of 2021, in which institutional short sellers were outbid by retail traders. However, there are still concerns about how long the ALPACA pump can last and what will happen after Binance’s final delisting.
Bitcoin nears $97,000, while altcoins like KAITO and Alpaca Finance lead gains.
The cryptocurrency market remained relatively flat on Wednesday as investors digested the Federal Reserve’s decision to leave interest rates unchanged.
At the time of writing, Bitcoin (BTC) is up 2.5% to nearly $97,000 over the past 24 hours, while Ethereum (ETH) has gained 3% to reach approximately $1,815. XRP also recorded an increase, albeit more modest, rising 1% to $2.13. Meanwhile, Solana (SOL) climbed 2% to $145.
BTC PriceTwo standouts among altcoins include KAITO, which surged 47% to $1.29, and Alpaca Finance, which rose 38% to $0.28.
The total cryptocurrency market capitalization remains flat on the day at around $3.03 trillion. Meanwhile, leveraged liquidations totaled approximately $249 million, according to CoinGlass. BTC accounted for around $93 million of these liquidations, with ETH following at approximately $45 million.
Meanwhile, spot BTC exchange-traded funds (ETFs) recorded $86 million in outflows on Wednesday. Spot ETH ETFs experienced around $18 million in outflows, according to SoSoValue data.
Fed Holds Rates SteadyThe slowed market activity comes as the Federal Reserve held interest rates steady on Wednesday, maintaining its benchmark federal-funds rate at 4.25% to 4.50%. This decision came at the conclusion of a two-day meeting of the Federal Open Market Committee (FOMC).
The move was widely anticipated by markets, and Fed officials emphasized they are closely monitoring the implications of existing policies before considering any future adjustments. "Uncertainty about the economic outlook has increased further," the FOMC said.
The Fed’s decision comes amid growing pressure from President Donald Trump to lower interest rates. Over the past few weeks, Trump has been increasingly vocal in criticizing Federal Reserve Chair Jerome Powell and his handling of monetary policy.
In a social media post on April 18, Trump wrote: “The ECB is expected to cut interest rates for the 7th time, and yet, ‘Too Late’ Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete mess!”
Once a top protocol on BNB Chain, Alpaca Finance will discontinue leveraged yield farming, stablecoin services, and its perpetual exchange by December.
Alpaca Finance, a decentralized finance project known for leveraged yield farming on BNB Chain, is shutting down after four years — and while the team says it’s the “most responsible” move for the community, the market didn’t take it well, with ALPACA (ALPACA) falling nearly 30% to $0.1126.
In a blog post late Monday, the Alpaca Finance team said it had made “the incredibly difficult decision to begin sunsetting Alpaca Finance and all of its products,” citing shrinking revenue, failed acquisition talks, and the recent delisting of ALPACA from Binance as reasons behind the move.
“This choice wasn’t made lightly, but we believe it is the most responsible course of action to safeguard our community and ensure a graceful and secure wind-down.”
The Alpaca Finance team
Alpaca Finance launched in early 2021 with a leveraged yield farming platform that gained traction on BNB Chain. Over time, the team introduced other products such as automated vaults, an AUSD stablecoin, and a perpetual trading platform dubbed “Alperp.”
However, the launch of concentrated liquidity AMMs “fundamentally shifted the landscape,” the team said, adding that “traditional leveraged yield farming became significantly less compelling and much more difficult to do profitably.”
The team also admitted it had “been operating at a loss for over two years,” even after downsizing, adding that continuing under these conditions “is simply not sustainable.” The Alpaca Finance team says it explored mergers and acquisitions but added that “these deals fell through” as the market weakened in early 2025.
The recent delisting of ALPACA from Binance “was another major blow,” as it “not only limits token accessibility but also restricts our ability to deploy our remaining warchest effectively toward any new initiatives,” the team wrote in the blog post. The shutdown will proceed gradually, with key deadlines set between June and December.
With over four years of experience in covering and tracking the financial markets, Sneha Agrawal is a dedicated Crypto Journalist and Editor with passion for researching and writing the crypto pieces. She is currently leading the Block of Fame, here at CoinGape. She likes to keep track of political, legal and financial happenings all around the world - without which she deems her day incomplete. Apart from her Journalistic endeavours, she is a solo traveler, museum goer, and a keen reader of books.
Yield farming platform lost its mojo.Alpaca was a popular DeFi project.If DeFi is a Darwinian race with no finish line, then this week, another runner just dropped out.
On Monday, Alpaca Finance, once a major DeFi yield farm, announced that it was shutting down in a post on Medium.
The four-year-old protocol, which has suffered a 94% plunge in investor funds, to $55 million, in the last four years, isn’t making its exit because of a hack or malicious exploit.
Rather, it was something simpler, slower, and far more lethal that spelled its end: the cold arithmetic of obsolescence.
Revenue problemsAlpaca’s team said declining revenues and waning user interest, coupled with mounting operational costs, were insurmountable.
Despite making cost-cutting measures and introducing new product ideas, revenue stayed moribund, and the team said it had been operating at a loss for over two years.
“There’s no more business,” said an Alpaca admin who goes by Bibendus on the project’s Discord server.
Alpaca’s demise is not without a sense of irony. Most DeFi experiments fail because they are unable to find product-market fit.
But not Alpaca.
It found its audience early and amassed investor funds. Alpaca’s popularity in 2021 coincided with the degen craving for yield amplification through borrowing and farming.
It was simple and effective in a risk-averse market hungry for outsized returns.
But DeFi isn’t static. The rules change.
Concentrated liquidityIn Alpaca’s case, the change came in the form of concentrated liquidity automated market makers, or AMMs. Think Uniswap’s third iteration, called v3, and its many copycats.
These new, buzzier protocols rewarded users for precision liquidity provision, supplying capital at tight price bands, thereby reducing risk exposure.
They also delivered built-in leverage in their design, which made Alpaca’s external leverage model redundant.
As part of the shutdown process, Alpaca will disable the option to create new positions in June. The team also asked users to exit their active positions or be automatically closed by the end of next month
Users will still be able to withdraw their funds until the end of the year, after which the front-end website will go offline.
Crypto market moversBitcoin has traded flat over the past 24 hours and is at $109,697.Ethereum is 2.9% over the same period and is at $2,638.What we’re readingHow Trump’s memecoin dinner just reshaped Satoshi Nakamoto’s breakthrough ― DL NewsSolana is the app revenue king — Milk RoadJudge Overturns Fraud Convictions of Mango Markets Exploiter ― UnchainedIs Solana DeFi undervalued? — Milk RoadMost XRP investors bought the top. Here’s how long they’ll need to wait until the next surge ― DL NewsOsato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at [email protected].
Coin PricesCrypto rally stalls, BTC Vegas today, Circle files for IPO
Crypto rally stalls, BTC Vegas today, CIRCLE files for IPO FOMO HOUR EP365 BTC rally stalls under $110k on profit taking. BTC options OI hits new record. Hyperliquid whale loses $67m in 5 days. SOL co-founder sees KYC details doxxed. Trump Media denies plan to buy $3bn of crypto. Bitcoin Vegas begins today. Strategy acquires $427m BTC. Blockchain Group issues EUR63m bond to buy BTC. Onchain proof-of-reserves a bad idea: Saylor. Florida could end cap gains tax on crypto, stocks. SUI to allocate $10m for security. Circle files for IPO, denies sale talks. SBF’s sentence to be reduced by 4+ years. Tom Brady invests in Catena Labs. Alpaca Finance to wind down. Meteora now top fee-generating dApp on SOL. Bitlayer collabs with major mining pools on BitVM. Thailand to integrate crypto payments for services. FOMO HOUR brings you the biggest daily news, updates and events from inside and outside of the crypto and macro spheres! Join hosts Farokh, Mando and Tyler as they cover some of the biggest topics at present with some of the biggest names in the ecosystem. Streaming live 5 days per week, Monday to Friday 10:00 AM EST to 11:00 AM EST on YouTube and X. JOIN YEET = https://yeet.com/register?aff=fomohour PLAYLIST = https://www.youtube.com/playlist?list=PLGSgoImPFTiVpkHhLXF78cE_Z3uG7VNGL PODCAST = https://x.com/i/spaces/1kvKpydgqMQGE LIVE SPACE = https://x.com/i/spaces/1yoKMoMzdznJQ Links: https://linktr.ee/fomohour https://twitter.com/fomohour https://www.rug.fm/ https://x.com/rugradio Hosts: https://twitter.com/farokh https://twitter.com/rektmando https://twitter.com/tyler_did_it Myriad: https://myriad.markets https://x.com/MyriadMarkets #bitcoin #crypto #podcast
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Kyber and Alpaca lead crypto gains with weekly surges of 139.2% and 194.4%, respectively. XRP hits $2.77 with $16.3B volume, maintaining strong market cap and trading activity. BAKE posts the only loss this week, falling 3.9% amid broad altcoin uptrend. Kyber Network (KNC) and Alpaca Finance (ALPACA) led the weekly gainers list as of July 12, 2025, according to updated data tracked by Phoenix Group via CoinMarketCap. Both assets saw large percentage increases over the past seven days, outpacing other trending cryptocurrencies by a wide margin. XRP also held its place among top-trending tokens, maintaining high market activity and capitalization levels as the broader crypto market continued to register concentrated movements in selected altcoins.
Kyber Network recorded a 139.2% gain this week, closing at a price of $0.67. The token posted a trading volume of $974.6 million over the seven days, placing it among the most actively traded altcoins currently trending on CoinMarketCap. Alpaca Finance, which saw the largest percentage gain on the list, rose 194.4% to trade at $0.036. Its 24-hour trading volume reached $18.3 million, signaling a notable uptick in short-term market interest.
Other gainers included Ark (ARK), which gained 31.7% over the week to reach a trading price of $0.75. Measurable Data Token (MDT) also showed a strong performance, rising 33.1%. IDEX posted a 22.5% increase, with $497 million in weekly trading volume, despite having a relatively minor market capitalization of $21.5 million.
XRP Maintains Uptrend with High Market Participation XRP has further attracted the attention of the institutions and retail markets, which further increased by 37.6% this week to trade at $2.77. It remained one of the valuable digital assets on the list, with a cumulative market cap of $163.6 billion. One of the greatest trade volumes of the day was exposed by XRP, standing at $16.3 billion, which guaranteed continued demand and high liquidity in the latest trades.
Meanwhile, lower-cap tokens such as Proton (XPR) followed suit and recorded a corresponding percentage rise of 37.6% over the same period, indicating replicating investor activity. Fusionist (ACE) increased by 15.5% to $0.35, and WEMIX went up by 25.2% to $0.51, with an equivalent trading volume of 15.5 million and a market capitalization of 233.7 million.
BakerySwap (BAKE) was the sole asset on the list to close the week in the red. It dropped 3.9% across the same period, differing from the broader upward trend among other trending cryptocurrencies. Most of the tokens listed were traded predominantly on Binance, followed by other major platforms, including Coinbase and KuCoin.
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Peter Mwangi is an accomplished crypto news writer with over three years of experience. He is recognized for producing insightful, well-researched content across major crypto publications. As an expert in blockchain technology, digital assets, and decentralized finance, he can uniquely simplify complex topics into engaging, accessible narratives. His strong storytelling and analytical skills, combined with a passion for continuous learning and collaboration, make him a valuable asset to the BlockchainReporter team.
Cryptocurrency exchange colossus Binance has again sent shockwaves across the broader market with its plans to delist 4 cryptocurrencies. An official announcement by the CEX on Thursday, April 24, revealed that the following tokens are to be delisted from the platform on May 2, 2025, at 03:00 UTC:
Alpaca Finance (ALPACA) PlayDapp (PDA) Viberate (VIB) Wing Finance (WING) As a result, usual market sentiments about the mentioned crypto prices remain highly bearish as one of the top crypto exchanges discontinues trading support for them.
Binance Delisting News: Here’s Why ALPACA, PDA, VIB, & WING Were Removed According to Binance’s official release, the abovementioned cryptos will be delisted shortly due to a stockpile of risk factors that hamper user experience. Per the announcement, a thorough periodic review by the CEX concluded that these assets no longer meet the level of standards or industry requirements.
In response, the crypto exchange behemoth will delist the 4 tokens mentioned above. Mentioned below are some of the key factors that the exchange took into consideration before delisting the coins.
Commitment of the team towards the project. Level and quality of development activity. Trading volume and liquidity factors. Stability and safety of the network from all types of malicious attacks Level of public communication, community engagement, and transparency. Responsiveness to our periodic due diligence requests. Binance revealed that, based on these vital factors, among many others, the decision to remove Alpaca Finance, PlayDapp, Viberate, and Wing Finance spot trading pairs was taken. Moreover, ‘Trading Bots’ services for the same will also be suspended on the same date and time.
Users can move on to the official announcement for more details on Futures, Margin, Convert, and other related delistings for these assets. Overall, the announcement has dealt a severe blow to the market sentiment for these coins, with traders and investors even speculating about a sustained price crash ahead.
How Are The Coins Performing Today? Binance’s delisting saga appears to have triggered a waning action in three of the four tokens mentioned above. WING price crashed over 30% in the last 24 hours and is currently sitting at $0.8451. Whilst VIB price also took heat, slumping 31.5% over the past day to $0.01530.
PDA price tanked nearly 17% and even hit a low of $0.009517 in the past 24 hours. However, ALPACA price has conversely gained roughly 13% to $0.04953. Crypto market traders and investors continue to monitor the tokens, mainly expecting increased volatility ahead due to the delisting.
In another similar chronicle, Binance recently delisted cryptos ACT, ALPHA, BLUR, CELR, PENGU, POND, and RUNE.
Three low-cap altcoins slated for delisting by the world’s largest exchange, Binance, experienced sharp price surges on September 10.
BakeryToken (BAKE), Hifi Finance (HIFI), and Self Chain (SLF) initially plummeted following the delisting notice but rebounded dramatically today, defying expectations amid heightened volatility.
BAKE, HIFI, and SLF Prices Rise: Here’s Why?On September 3, BeInCrypto reported on Binance’s decision to cease trading support for these tokens effective September 17. The exchange cited routine reviews and compliance requirements, explaining that these assets no longer met its listing standards.
“At Binance, we periodically review each digital asset we list to ensure that it continues to meet a high level of standard and industry requirements. When a coin or token no longer meets these standards or the industry landscape changes, we conduct a more in-depth review and potentially delist it,” Binance stated.
The announcement initially battered prices. BAKE fell 20.26%, SLF dropped 25.27%, and HIFI declined 7.36%. This reflected investor panic over reduced accessibility and liquidity on Binance, which remains the largest crypto exchange by volume.
However, the story took an unexpected turn today. All three tokens saw synchronized price surges during early Asian market hours. Moreover, they peaked around the same time before modest corrections set in.
The biggest mover of the trio, BAKE, rose from $0.036 to $0.11. This represented a 205.5% appreciation. Even after correcting to $0.10, it maintained gains of 177%.
SLF followed, climbing from $0.024 to $0.050, a 108.3% rise. By press time, the altcoin had stabilized at $0.038, up by approximately 58%.
Lastly, HIFI gained more modestly. The coin advanced from $0.058 to $0.094—a 62.1% increase. After pulling back, it traded at $0.080, marking a 35.4% appreciation.
BAKE, SLF, and HIFI Price Rises Today. Source: TradingViewNotably, the majority of the trading activity for all three tokens originated from Binance. CoinGecko data showed that BAKE’s daily trading volume skyrocketed by 2,541.2% to $269.54 million in the past 24 hours. Binance pairs were the clear leaders, with BAKE/USDT accounting for 38.53% of trades and BAKE/TRY for 19%.
SLF saw its volume surge 658.50% to $56.15 million. Again, Binance trading pairs dominated. The SLF/USDT pair captured 30.23% of the activity, while SLF/TRY commanded an even larger 38.61%.
HIFI posted a 648.8% rise in trading volume, reaching $44.38 million. The HIFI/USDT pair on Binance accounted for nearly 43% of this total.
Analysts Warn of ‘Exit Liquidity’The synchronized timing of the price jumps and pumped volumes has raised questions about what’s driving the sudden surge. Crypto analyst Wise Advice noted on X that short positions—bets against the tokens—combined with low liquidity, triggered violent upward pressure as shorts covered amid rising prices.
Another analyst claimed that the same manipulative group is orchestrating a pump-and-dump for all three tokens. The rise in BAKE, SLF, and HIFI mirrors patterns observed with Alpaca Finance (ALPACA).
BeInCrypto highlighted that the token’s value quadrupled after a Binance delisting announcement. Nevertheless, ALPACA plunged afterward, with the losses amplified by Alpaca Finance’s closure.
Thus, despite today’s rally, the long-term prospects for BAKE, SLF, and HIFI remain uncertain. Once delisted from Binance, these tokens will lose their most liquid marketplace and be forced to rely on smaller exchanges. Historically, assets in similar situations have struggled to maintain visibility and investor interest after being removed from major platforms.
Binance, one of the world’s largest crypto exchanges, has shortlisted 10 altcoins for close monitoring, with potential for delisting.
This review, set to take around 30 days, reflects Binance’s attempts to enhance market quality.
Binance Shortlists 10 Altcoins For Potential DelistingFollowing its announcement to list GoPlus Security (GPS), Binance shared another update detailing extending its monitoring tags to 10 altcoins.
Specifically, Aergo (AERGO), Alpaca Finance (ALPACA), AirSwap (AST), Badger DAO (BADGER), BurgerCities (BURGER), COMBO (COMBO), NULS (NULS), STP (STPT), UniLend (UFT), and VIDT DAO (VIDT) are now on the list, effectively placing them on high risk of delisting.
“Tokens with the Monitoring Tag exhibit notably higher volatility and risks compared to other listed tokens. These tokens are closely monitored, with regular reviews conducted. Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform,” Binance explained in a blog.
Accordingly, Binance has implemented a new requirement for users looking to trade any tokens marked on its Spot trading and Margin platforms. To gain access, traders must pass a risk-awareness quiz every 90 days. This measure ensures that users understand the risks associated with these tokens before engaging in trades.
The exchange emphasized that this shortlisting does not guarantee delisting. Binance will conduct periodic project reviews and decide whether to add or remove the Monitoring Tag. Notably, this decision will hinge on current findings after the review process.
Nevertheless, this assurance did not assuage token holders. In the immediate aftermath of this potential delisting announcement, the values of the 10 cited tokens dipped, posting double-digit losses as investors traded the news.
AERGO, ALPACA, AST, BADGER, BURGER, COMBO, NULS, STPT Price Performance. Source: TradingViewNotably, tokens with the Monitoring Tag present high risk due to concerns spanning regulatory uncertainty, low liquidity, or extreme volatility. Binance displays this tag on the corresponding Spot and Margin trading pages and the Markets Overview section. Additionally, the exchange shows a risk-warning banner whenever users interact with these tokens.
Citing community feedback, the leading exchange by trading volume said its monitoring tag would now be updated monthly. Nevertheless, it will continue to review the removal of Monitoring and Seed Tags quarterly.
“New projects will be added in the first week of every month,” the exchange added.
By enforcing this requirement, Binance aims to educate and protect its users, ensuring they make informed decisions. The move reflects the exchange’s increasing focus on risk management and compliance in a growing regulatory environment.
Meanwhile, the drop seen across the affected tokens is unsurprising, presenting as a typical reaction to such announcements. For instance, in December, Binance’s decision to delist three altcoins sent affected tokens down a cliff to record double-digit losses.
Conversely, listing announcements have the opposite effect. BeInCrypto reported earlier how Binance exchange’s move to list GPS sent the token soaring by over 10%.
