It is said that Binance Starch Minimum betting amounts for various cryptocurrencies, such as solana (SOL), polkadot (DOT) and cosmos (ATOM), for users willing to participate in their earning products.
Binance is adjusting the asset caps
Binance Earn products are a set of offerings that allow token holders to earn passive income from their crypto assets. Some of them include flexible savings and locked savings. In the latter, the user can lock in a token for a specified period. After that, they can withdraw the coins and rewards earned.
Binance has raised the 120-day asset lock cap on several crypto assets. As such, to lock ATOM for 120 days, users must now lock at least 1000 ATOM, out of 30 ATOM. Meanwhile, SOL companies must secure at least 500 SOL, which is an increase from 30 SOL.
However, as a result, annual percentage rates associated with these products have been reduced by 1-2 percent.
While some investors appreciate the simplicity and convenience of betting on a centralized exchange (CEX) like Binance, others prefer the alternative approach of betting directly on proof-of-stake blockchains like Ethereum and Cardano.
Although personal preferences differ, the change in the lock-up period on Binance is noteworthy as it can reveal market trends and potentially influence the choices of individual investors.
Opinion is divided
One Explanation One of Binance’s decisions is that the exchange is seeking to attract existing shareholders and new investments. This can be seen as a positive sign, especially given the increase in the ATOM cap before the US Securities and Exchange Commission (SEC) sued Binance.
The regulator claims, among other currencies, ATOM and SOL, as examples of unregistered securities that Binance enabled its citizens to trade illegally.
On the other hand, a different perspective is that the increase in personal quotas could interact with an increasing number of individuals opting for self-custodial solutions. This trend may have led to a decrease in the customer base of centralized exchanges, prompting Binance to conserve liquidity and prevent further loss of market share.
There are divergent opinions on this subject, which divides society. Some see the development as a positive sign of Binance’s confidence in the long-term potential of cryptocurrencies, as they believe these assets can withstand market volatility.
On the other hand, some people see this move as a last-ditch effort by the centralized exchanges to retain their power and keep up with the changing market. They believe that the advent of self-holding options, which give individuals more control over their assets, has caused exchanges such as Binance to adjust their services to stay relevant.