TL;DR

• Binance’s support for certain tokens drives price surges, as seen with recent additions.
• Delistings from the platform often lead to significant drops for affected tokens.

The Binance Effect

Most leading cryptocurrencies have recorded little to no price volatility in the past 24 hours, seemingly preparing for action after the final results of the US presidential elections (set for November 5).

However, some assets still charted substantial gains amid the overall consolidation. One example is the Solana-based meme coin Ponke (PONKE). 

Its price soared by over 15% minutes after Binance launched PONKE/USDT perpetual contracts. The offering allows up to 75x leverage and enables clients to employ other assets (such as bitcoin) as margin.

Perpetual contracts enable traders to bet on price movements without the need for direct asset ownership. They can remain open indefinitely (as long as margin requirements are met) and offer the potential for huge profits. At the same time, though, they are associated with a higher risk and can lead to substantial losses.

Support from a major crypto exchange like Binance results in increased accessibility, liquidity, and mark