Binance will implement new collateral ratios for several cryptocurrencies, including popular meme coins like Floki Inu (CRYPTO:FLOKI) and Dogs (CRYPTO:DOGS), effective September 3, 2024.
The world’s largest crypto exchange is set to adjust the collateral ratios, increasing FLOKI’s ratio to 40% from the current 35%. DOGS will experience a more significant adjustment, with its ratio rising from 10% to 30%.
In addition to these changes, other cryptocurrencies such as Toncoin (CRYPTO:TON), Render (CRYPTO:RENDER), Sun Token (CRYPTO:SUN), SuperRare (CRYPTO:RARE), and AdEx (CRYPTO:ADX) will also see increased collateral ratios starting tomorrow.
Binance highlighted that the updated collateral ratio will impact the Unified Maintenance Margin Ratio (uniMMR), and users are advised to monitor this closely to avoid potential liquidations or losses resulting from the ratio changes.
The collateral ratio represents the percentage of insurance required to secure a loan or maintain a position, indicating the value of the collateral compared to the borrowed amount.
A higher ratio provides better security for the lender in adverse market conditions.
In the past month, Binance has made several moves concerning meme coins.
The exchange introduced new trading pairs for DOGS, such as DOGS/BRL and DOGS/USDC, and launched trading bot services for these pairs.
DOGS, a new meme coin on the TON blockchain, gained significant attention after its late August launch, reaching a market cap above $800 million.
However, its momentum has since diminished, and the current market cap is now below $600 million.
Binance also recently added BONK/BRL as a trading pair, but the token experienced minimal volatility compared to its significant price surge in December 2023.
The forthcoming adjustments reflect Binance’s ongoing efforts to refine its trading environment and respond to market dynamics.