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Crypto prices fall as Binance scraps plans for exchange

By Monte Stewart


Updated

A selection of Bitcoins
Bitcoin and other leading cryptocurrency prices plunged Monday - Photo: Shutterstock

Most digital coin prices dropped Monday after Binance, developer of the cryptocurrency by the same name, ended plans to operate a cryptocurrency exchange in Singapore.

Big assets, including Bitcoin, Ethereum, and Solana fell along with the Binance coin, while meme tokens also felt the effects.

Bitcoin was down more than 6%, dropping below $47,000, while Ethereum and Binance were down more than 8% at separate points. Binance later recovered slightly.

Less popular Solana took a sharper plunge, dropping more than 11%, and Polkadot was down by more than 10%.

Other crypto assets

Along with its eponymous digital coin, Binance operates exchanges around the world that trade other crypto assets. Investors in other crypto currencies reacted to the company's decision to withdraw its license application for binance.sg.

BCH/USD

398.10 Price
+7.080% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

BTC/USD

64,564.50 Price
+6.930% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,477.90 Price
+8.340% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.12 Price
+9.630% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

Top meme token Dogecoin dipped more than 7%. Shiba Inu, the closely watched meme coin named after the same dog breed as Tesla CEO Elon Musk’s puppy, fell more than 11% before rebounding.

But Binance CEO Changpeng Zhao said on Twitter and in an interview with Bloomberg that the company will continue to invest in Singapore.

Zhao said the license application withdrawal was linked to the company’s recent acquisition of an 18% ownership stake in private Singapore-regulated Hg Exchange, which currently trades crypto assets.

Tether and USD Coin, which are both pegged to the American dollar, bucked the downward trend by rising marginally.

Read More: Binance plunges 8% on scrapped Singapore exchange

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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