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Exchanges lower token risk values, exiting leveraged traders with less breathing room

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Image by CryptoSlate.

Binance lowered the collateral ratio for six tokens on Sept. 18, while Coinbase International Exchange says 29 assets will leave its eligible-collateral list on Sept. 29.

Key facts

Summary

01 Binance cut six tokens’ collateral ratios to 10%; Coinbase will remove 29 assets on Sept. 29. 02 $100,000 in an affected Binance token now provides $10,000 of collateral credit, down from $30,000. 03 Margin calls or deleveraging depend on account exposures; exchanges have not disclosed those effects. The exchanges operate separate products and account systems, but both changes show how an affected token can keep the same market price while contributing less to a trader’s borrowing limit or margin cushion.

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