Today, Binance, the world's largest cryptocurrency exchange, announced the launch of a new CHESS/USDT perpetual contract. This measure led to a sharp 35% increase in the CHESS token price.
Binance's New Contract
Binance expanded its list of trading options on Binance Futures by launching the CHESS/USDT perpetual contract. This contract supports the multi-assets mode and allows up to 75x leverage. "Multi-assets mode allows users to trade the CHESS/USDT perpetual contract across multiple margin assets, subject to the applicable haircuts. For example, when the Multi-Assets Mode is activated, users can use BTC as margin when trading the CHESS/USDT perpetual contract," the company explained. Perpetual contracts allow traders to speculate on the price of a specific cryptocurrency without actually owning it. These contracts have no expiration date, allowing users to hold positions indefinitely. While they can yield high returns, they also come with increased risk.
CHESS Market Success
Cryptocurrencies often see their prices increase after being supported by a major exchange like Binance due to enhanced liquidity, visibility, and credibility. The Transchess (CHESS) token was no exception, with its price rising by 35% in one day. On August 29, the token value exceeded $0.22, the highest level in four months.
Impact of Binance Support on Other Tokens
Earlier this month, Binance added support for Toncoin (TON) by introducing the following trading pairs: TON/BTC, TON/USDT, TON/FDUSD, and TON/TRY. The token price increased by 10%, reaching $6.40. Toncoin continued its upward trend, briefly surpassing $7 in mid-August before falling to nearly $5. The current price is around $5.60. Another cryptocurrency that experienced significant growth after Binance support is Syscoin (SYS). The token's value surged by 60% on August 19 following the launch of the SYS/USDT perpetual contract with up to 50x leverage. However, the rally was short-lived, and the token's price dropped by 45% from its local peak, currently sitting around $0.11.
The launch of the CHESS/USDT perpetual contract on Binance contributed to a 35% increase in the token price, demonstrating that support from a major exchange can significantly affect a cryptocurrency's value. Similar effects were observed with other tokens such as Toncoin and Syscoin.
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