On May 7, Binance, the world’s largest crypto exchange, announced the suspension of market order functions for selected spot and margin trading pairs until further notice. The move will affect the most hyped meme coin, PEPE, as well as Shiba Inu (SHIB) and FLOKI, among others.
The announcement from Binance stated that the “Market Order – Total” feature for selected spot and margin trading pairs would be suspended. This means that users will not be able to access the “Total” and “Slider for Amount Customization” while placing market orders. However, the manual input to “Market Order – Amount” remains available for placing market orders.
The suspension of market order functions
The suspension of market order functions mostly affects meme coins such as Shiba Inu, FLOKI, and PEPE. Trading pairs for Shiba Inu include SHIB/USDT, SHIB/BUSD, SHIB/EUR, SHIB/BRL, SHIB/TRY, SHIB/AUD, and SHIB/DOGE. Recently listed pairs such as PEPE/USDT and PEPE/TUSD, FLOKI/USDT and FLOKI/TUSD are also impacted by the changes.
The market order functions are also suspended for almost all trading pairs listed against BIDR, and XECBUSD and XECUSDT are also impacted. The features remain unavailable on Binance Web, App, Electronic, and API until further notice. Users will see the “Quote order qty market orders are not supported for this symbol” prompt when placing market orders for the above spot and margin trading pairs.
Reasons Behind the Move
The reason behind the move is not clear, but the restrictions are likely due to volatility and risks in trading meme coins. The suspension of market order functions is meant to control volatility in meme coins, which have been experiencing wild price swings.
Binance recently listed FLOKI and PEPE meme coins on the exchange after continued demand from its users. After the listing, FLOKI price jumped 40%, and PEPE skyrocketed by 60%. These massive price jumps, coupled with the inherent volatility of meme coins, make them risky investments.
FLOKI and PEPE Rises After Binance Listing
FLOKI and PEPE coins are trading with massive trading volume after listing on crypto exchange Binance. FLOKI price is currently trading at $0.0000435, after hitting a high of $0.0000548 after the Binance listing.
Meanwhile, PEPE price jumped 60% in the last 24 hours, with the price currently trading at $0.00000308. The price has fallen after several whales sold their holdings. SHIB price trades at $0.0000097, down 2% in the last 24 hours and 6% in a week. Traders are selling SHIB and other meme coins to trade PEPE and FLOKI.
Impact of the Suspension of Market Order Functions
The suspension of market order functions for selected spot and margin trading pairs will have a significant impact on traders who are interested in trading meme coins. Meme coins are known for their wild price swings, and traders who rely on market orders to enter or exit trades may find it difficult to execute their trades.
Market orders are used by traders to buy or sell assets at the current market price. With the suspension of market order functions for selected spot and margin trading pairs, traders will not be able to use this feature to enter or exit trades.
Conclusion
The recent announcement by Binance to suspend market order functions for selected spot and margin trading pairs, including meme coins such as Shiba Inu, FLOKI, and PEPE, has created a stir in the cryptocurrency market. While the reason behind the move is not entirely clear, it is likely due to the volatility and risks associated with trading meme coins.
