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Binance launches high-leverage futures contracts for COOKIE, ALCH, and SWARMS, impacting market stability and user attraction.
Binance just dropped a new futures contract for three coins: COOKIE, ALCH, and SWARMS. They are doing this to give us more options and to enhance our experience on the crypto site.
They’ll be live at these UTC times:
- COOKIEUSDT at 11:30
- ALCHUSDT at 11:45
- SWARMSUSDT at 12:15
Each of these contracts will have a leverage of up to 75x. Yeah, you heard that right. You could make some serious gains, but also risk a lot.
All three coins are already on Binance Alpha, which aims to showcase potential Web3 projects.
COOKIE’s price went on a rollercoaster ride after the announcement. It jumped from $0.59 to above $0.33, hitting a market cap over $100 million. Then it crashed back to $0.59, only to surge again. Currently, it’s around $0.6 with a market cap of $95 million.
This is the utility token for Cookie DAO in the magnetic economy.
ALCH saw its price move up from $0.18 to over $0.19 before the announcement. Then it dropped back down before shooting up again. It’s now trading at $0.18 with a market cap of $160 million.
This token is for the no-code development platform that lets you turn any thought into an app.
SWARMS initially dropped from the $0.6 levels to $0.49. But it rebounded back to $0.51 with a market cap of over $515 million.
This is for AI agents that collaborate to solve complex problems.
Now, high leverage can be both a blessing and a curse. It can lead to massive losses, especially if the price moves against you. Getting liquidated can happen so fast that you can lose more than you put in.
And, when a lot of trades get liquidated at once, it can tank the price even more.
Crypto is volatile, and high leverage can make it worse. Big trades can cause cascading effects that disrupt market stability. High funding rates, often tied to high leverage, can also signal increased volatility.
You need to manage risk closely when trading with leverage. If you don't, you might end up with some serious financial setbacks.
High leverage can affect market dynamics, especially in perpetual futures. High funding rates can lead to liquidation events.
Some exchanges have tried to limit the risks by reducing the maximum leverage or capping the amount of capital at certain leverage levels. But will it be enough to prevent mass liquidations?
So there you have it. Binance’s new high-leverage contracts can ramp up risks and volatility and lead to forced liquidations. Keep your eyes open and manage your risks.
