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Chainlink (LINK) Collapses 20 Percent in One Minute, but This New Binance Product Might Save the Day

Binance launches Chainlink futures as LINK tumbles 20 percent

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Binance Futures, the futures arm of the world’s leading cryptocurrency exchange by reported trading volumes, has introduced a perpetual contract for the Chainlink (LINK) cryptocurrency.  

It is paired against USD Coin (USDC) and offers traders an opportunity to trade the high-flying cryptocurrency with up to 75x leverage. 

The recently announced product will become available for trading on Aug. 19 at 7:00 UTC. 

Expanding the list of contracts 

Shortly after launching its futures branch in September 2019, Binance became one of the key players in the derivatives market, offering OKEx, BitMEX, and Huobi some tough competition.

Since debuting with only three coins Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH), it has already launched a bunch of perpetual contracts for most top cryptocurrencies, including XRP, Tron (TRX), Cardano (ADA), IOTA (MIOTA), and others.  

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Last month, the exchange also rolled out a quarterly futures contract for LINK that will expire on Sept. 25, 2020.     

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LINK plunges 20 percent 

Notably, Binance’s launch of the perpetual contract for shorting or longing LINK with up to 75x leverage came shortly after the token plunged by more than 22 percent in one minute on Aug. 17 at 23:09 UTC on the Kraken exchange. This was followed by a swift recovery. 

LINK
image by tradingview.com

Coins tend to experience more volatility after their contracts start trading on Binance Futures.    

In its latest blog post, Binance made its usual warning about the risks associated with futures trading.

Given how volatile cryptocurrencies are, traders trader use the maximum leverage can have their positions liquidated during wild market moves. 

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Alex Dovbnya

Alex covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. He’s a firm believer that Blockchain has the potential to reshape pretty much every business out there, and cryptocurrencies are only a stepping stone to the upcoming decentralized revolution.