Important Binance Update Affecting Various Meme Coins: Details

The amendments will come into effect on September 3.

TL;DR #binance4ever

• Binance will raise the collateral ratios for several cryptocurrencies, including Floki Inu (FLOKI) and Dogs (DOGS).

• The company introduced new trading pairs for DOGS, possibly contributing to the meme coin’s solid performance last week.

The Latest Update

The world’s largest crypto exchange will amend the collateral ratio for several altcoins, such as some trending meme coins like Floki Inu (FLOKI) and Dogs (DOGS). The update is scheduled for September 3 and will take approximately one hour.

The collateral ratio for FLOKI will be raised to 40% from the current 35%. DOGS will witness an even more substantial increase: from 10% to 30%.

Other cryptocurrencies whose ratios will go up from tomorrow (September 3) include Toncoin (TON), Render (RENDER), Sun Token (SUN), SuperRare (RARE), and AdEx (ADX). 

“Collateral ratio will affect the Unified Maintenance Margin Ratio (uniMMR). Users should monitor uniMMR closely to avoid any potential liquidation or losses that may result from the change of collateral ratio,” Binance added.

The collateral ratio in crypto refers to the proportion of insurance that must be provided to secure a loan or maintain a position. It is typically shown as a percentage and indicates how much the collateral is worth in comparison to the amount borrowed. A higher ratio provides greater assurance that the lender will be able to recover the borrowed funds even if the market conditions change unfavorably.