AIO and XNY recorded a sudden spike in a short time, driven by the upcoming launch of new derivatives contracts by the Binance exchange.
The price of AIO reached $0.0919, an increase of 25.78%, while XNY increased by 20.16%, currently trading at $0.0172, related to the announcement of adding perpetual contracts for both tokens on Binance.
MAIN CONTENT
AIO increased by 25.78% thanks to the launch of derivatives contracts on Binance.
XNY increased by 20.16% in a short time following the same trend.
Binance has added perpetual contracts for the AIOUSDT and XNYUSDT pairs.
Why did AIO and XNY increase rapidly?
AIO and XNY both surged strongly in price as Binance just announced the launch of derivative contracts for these two tokens.
The announcement of the addition of perpetual contracts for the AIOUSDT and XNYUSDT trading pairs has led investors to expect that liquidity and trading will increase. This is reflected in the 25.78% increase of AIO and 20.16% of XNY in a short period, showing significant interest from the market in new derivative products on Binance.
The launch of derivative contracts often helps tokens increase liquidity and push prices up due to higher investment and trading demand, creating a positive effect in the short term.
What are perpetual contracts and how do they affect token prices?
A perpetual contract is a type of derivative contract that has no expiration date, allowing investors to hold flexible long or short positions.
The addition of perpetual contracts for AIOUSDT and XNYUSDT by Binance helps increase liquidity and creates more diverse trading opportunities for investors. The pressure from new capital inflows into the derivatives market often increases the value of related tokens.
This is also a sign that Binance values the growth potential of these two tokens while expanding trading scope to attract more professional investors.
"The expansion of derivative contracts not only provides additional risk management tools for investors but also promotes liquidity and sustainable development of tokens in the market."
CEO of Binance, 2023
How does the issuance of new contracts affect liquidity and market volatility?
Adding perpetual derivatives contracts helps increase liquidity, thereby reducing the bid-ask spread, making trading more efficient.
When investors have additional tools for risk hedging or speculative opportunities, new capital will continuously flow into the market, causing asset prices to fluctuate significantly, especially in the short term. This is a common reason why tokens that have just been listed with new contracts often experience sudden price spikes.
At the same time, the increase in liquidity also facilitates institutional traders to operate more efficiently, enhancing competitiveness in the derivatives market.
Frequently Asked Questions
Why did AIO and XNY increase in price?
The launch of perpetual futures contracts for these two tokens by Binance creates additional liquidity, significantly increases trading demand, and pushes prices up.
What are perpetual contracts on Binance?
As a derivative contract without an expiration date, it helps investors maintain flexible long or short positions and manage risks effectively.
How does the addition of new contracts affect the market?
Increased liquidity, reduced spreads, stimulates new capital inflows, and causes high price volatility in the early stages.
What should be considered when investing in tokens with new derivatives contracts?
Analyze price fluctuations, leverage risks, and the trend of the derivatives market to make appropriate decisions.
Do tokens with new derivatives contracts always increase in price?
Not necessarily, prices can fluctuate sharply in either direction, depending on actual supply and demand and investor sentiment.
Source: https://tintucbitcoin.com/aio-xny-tang-hon-20-sap-ra-mat/
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