The price of Binance’s BNB token has recently jumped 12% to hit the $34 mark after the cryptocurrency exchanged teased the launch of margin trading, a long-awaited feature that’s seen as an important growth factor for cryptocurrency trading.
Via the microblogging platform Twitter, the leading cryptocurrency exchange teased the arrival of margin trading options for its users through a post asking them whether they prefer the light or the dark theme.
Dark mode 🌚 or Light mode 🌝? #Binance pic.twitter.com/pGSb1np4yp
— Binance (@binance) May 24, 2019
The company’s CEO, Changpeng Zhao, initially revealed the exchange was set to add margin trading options earlier this month during a live stream that followed a security breach that saw hackers steal over 7,000 BTC (over $40 million) from its hot wallet.
According to TechCrunch, the cryptocurrency has beta tested margin trading among selected users, and a Binance representative has confirmed the exchange will launch the feature “soon.”
Margin trading lets traders use their balance as collateral to enter leveraged positions, and while it can allow them to make greater profits, it also carries greater risk. Binance has been avoiding margin trading so far, while Huobi Pro, Poloniex, Kraken, and BitMEX all let traders enter leveraged positions.
The news outlet notes the feature is part of a wider number of upgrades the exchange is looking to add. Binance has back in January of this year launched Binance Jersey, which lets users trade BTC and ETH with EUR and GBP, as well as a decentralized exchange (DEX) that’s set to let users trade from their own wallets.
The crypto exchange’s recent margin trading tease saw the price of its Binance Coin token surge by about 12% in only 24 hours. CryptoCompare data shows it’s currently trading above the $34 mark, and that over the last 30 days BNB has risen by over 54%.
This, despite the recent hack that forced Binance to shut down deposits and withdrawals temporarily, and that saw the exchange resort to its Secure Asset Fund for Users (SAFU) for the first time since it was launched in July of 2018.
Most other cryptocurrencies are also up in the same period., with BTC, ETH, XRP, and BCH all rising between 5% and 7%. Litecoin and Waves’ token stand out, as they’re up by 11% and 22.9% respectively.
