Binance has made adjustments to FIL-related trading pairs many times. For example, on October 2, 2024, it was reported that Binance officially announced that based on the recent audit results, the FIL/BNB spot trading pair will be removed and trading of the trading pair will be stopped at 11:00 (Eastern Time) on October 4. This move may have many impacts on FIL.
1. Market liquidity
・Narrowing of trading channels: Binance, one of the world's largest cryptocurrency trading platforms, has cut off FIL's trading channels on the platform after it removed FIL-related trading pairs. For investors holding FIL, the loss of a crucial trading venue will reduce FIL's market liquidity to a certain extent. It is no longer so convenient and fast for investors to buy and sell FIL, which is likely to cause the spread of transactions to widen, thereby increasing transaction costs.
・ Reduced capital inflow: Binance has a huge number of users, and trading activities on its platform have an important impact on FIL's capital inflow. After the delisting, new investors may reduce their attention and investment in FIL because they cannot trade on Binance, and existing investors may also reduce their holdings due to reduced trading convenience, resulting in a decrease in FIL's capital inflow and a certain downward pressure on its price.
2. Market confidence
・Investor confidence is frustrated: Binance's move to delist FIL is likely to cause concerns and doubts about FIL in the market. Investors will have doubts about FIL's project prospects, compliance, and other aspects. This uncertainty will cause some investors to lose confidence and sell FIL, pushing its price down. Especially for those investors who are more sensitive to Binance's decisions, their actions may trigger a chain reaction and affect the entire market's view of FIL.
・The reputation of the project is damaged: From the perspective of the project, Binance's delisting may be seen as a negative evaluation of the FIL project. This will affect the reputation of the FIL project in the cryptocurrency market, putting it at a disadvantage when competing with other projects, and will also increase the difficulty of subsequent financing and cooperation for the project.
3. Price trend
・Severe short-term price fluctuations: When the news comes out that Binance announces the delisting of FIL-related trading pairs, the market usually experiences panic selling in the short term, which in turn causes the price of FIL to fall rapidly. Especially when market sentiment is fragile, this downward trend may be more significant. However, some speculators may take the opportunity to buy the bottom, causing prices to rebound to a certain extent in the short term. However, this rebound is often short-lived and difficult to reverse the overall downward trend.
・Potential long-term price impact: From a long-term perspective, if the fundamentals of the FIL project itself fail to improve, and problems such as stagnant technology development and difficulty in implementing application scenarios cannot be effectively resolved, then Binance's delisting may accelerate the decline in FIL prices. However, if the project party can actively respond, vigorously strengthen technology research and development and market promotion, and attract more exchange support and investor attention, then the impact of Binance's delisting may gradually fade.
