Among the tokens delisted in Binance's second round of voting, Alpaca is different from the other three tokens. After the announcement was made, it surged against the trend, with an astonishing increase of 650%, overturning the established impression in the market that 'delisting is a negative'. As for why Alpaca could rise against the trend, community KOLs provided three viewpoints.
The world's largest exchange, Binance, launched its first 'vote for delisting' activity on March 21. Up to now, Binance has held two token delisting votes.
The results of the second vote for delisting will be announced on the 24th. Binance's official announcement states that the spot trading pairs for the four tokens: $ALPACA, $PDA, VIB, and $WING will be delisted and trading will stop on May 2, 2025, at 11 AM.
$Alpaca surged against the trend by over 600%
We know that being delisted from Binance's spot trading pairs is extremely negative news for tokens, and typically, the token price will plummet as a result.
Interestingly, the price of $ALPACA surged against the trend after the delisting announcement. It skyrocketed from a low of $0.029 to a high of $0.2173, an increase of 649%.
As of now, ALPACA is currently priced at $0.1995, having increased by 158% in the last 24 hours.
Community: Shorting Alpaca with a low market cap is irrational
As for why $ALPACA surged against the trend after the delisting news was announced, community KOL Benson Lin shared his three perspectives.
ALPACA is the only token among those delisted this time that has strong market manipulation power and the lowest cost due to its large exchange contracts, so choose Alpaca.
Recently, many small MC (market cap) tokens have been pumped. Before the drop, Alpaca's market cap should have been between 6-8 million, which is already extremely small.
Because its market cap has become so small, continuing to short is also unreasonable, so the expectation of shorting here must be higher. Moreover, this kind of news trading will attract a lot of inexperienced traders who do not look at the market cap and continue to rush in to short, which can bet on retail investors who enter late getting taught a lesson.
Additionally, after Alpaca's surge, many 'shorting' groups appeared in the market, causing the ALPACA fee rate to show a relatively high negative rate recently.
In response, Binance also promptly adjusted the contract fee settlement frequency for this token from once every four hours to once every two hours. Other exchanges also adjusted the contract fee rates for this token, thereby increasing the cost pressure on short traders.
According to Coinglass data, Alpaca's liquidation amount in the last 24 hours reached $16.23 million, with the liquidation amount for short positions reaching $13.59 million.
