Binance Delists 3 Altcoins, Triggering Major Price Dumps

According to the official announcement dated November 3, Binance Futures will close all positions and conduct automatic settlement on the KDA/USDT perpetual contract on November 6. The process will repeat for the AXS/USD and THETA/USD contracts a day later. The exchange explicitly advised users to close any existing positions before the delisting period and prohibited opening new positions for these products. The disclosure further warned that Binance Futures may undertake additional protective measures without further announcement to manage risks in volatile conditions, including adjusting maximum leverage values, position values, maintenance margins, funding rates, and implementing the Last Price Protected mechanism.

The market reaction was swift and severe. Kadena (KDA) headed south shortly after the news broke, dropping to as low as $0.03, representing a 22% collapse on a daily scale. Axie Infinity (AXS) and Theta Network (THETA) retraced by 9% and 8%, respectively. This immediate sell-off highlights the market’s sensitivity to Binance’s operational decisions and the critical importance of exchange support for cryptocurrency liquidity and trader confidence.

This is not an isolated incident but part of a recurring pattern known as the ‘Binance Effect.’ Price dumps are typically most severe when Binance terminates all trading services for a cryptocurrency, as demonstrated last week when the exchange revealed it would delist Kadena (KDA), Flamingo (FLM), and Perpetual Protocol (PERP). During that previous announcement, KDA once again took the biggest blow, with its price sinking by approximately 30%. These repeated delistings systematically reduce the liquidity and visibility of affected coins while causing significant reputational damage that can have long-term consequences for project viability.

The inverse of this phenomenon is equally powerful. Support from Binance typically has the entirely opposite effect and often acts as a substantial price catalyst. In September, the firm introduced the STBL/USDT perpetual contract with up to 50x leverage, and the asset’s valuation exploded by 500%. Shortly after, it launched the FLUID/USDT perpetual contract with up to 75x leverage, which was followed by a 55% rally for FLUID. This dual-edged sword effect demonstrates Binance’s unparalleled influence in determining which cryptocurrencies succeed or struggle in the highly competitive digital asset landscape.

Binance’s approach to these delistings includes comprehensive risk management protocols. The exchange explicitly reserves the right to implement additional protective measures toward the affected contracts without further announcement. These measures may include adjusting the maximum leverage value, position value, and maintenance margin in each margin tier, updating funding rates such as interest rate, premium and capped funding rate, changing the constituents of the price index, and using the Last Price Protected mechanism to update the Mark Price. These precautions are designed to protect users during what the exchange describes as ‘extremely volatile market conditions’ surrounding delisting events.

For cryptocurrency investors and traders, these developments serve as a stark reminder of the concentrated power that major exchanges hold over digital asset markets. The repeated significant price movements following Binance’s decisions—whether delistings that cause crashes or new listings that trigger rallies—highlight the importance of exchange relationships for cryptocurrency projects. As the regulatory landscape evolves and market structure matures, the dependence on a single exchange’s support may diminish, but for now, the Binance Effect remains a dominant force shaping cryptocurrency valuations and market sentiment.