🛡️ Is Binance Still Safe For Memecoins?

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Ever feel like the longer you're in the market, the less you truly understand? Binance is making us all worried about our memecoin portfolios! We'll explain more below.

Here’s what we got for you today:

• ℹ️ Crypto Sources From The Crypto Fire ℹ️

• 🚨 Is Binance Making Traders Burn Out on April Foo …

• 👀 You Need To Be Smart To Stay In Crypto Market? Nah …

• ⭐ 5 Things You Shouldn’t Miss

• 🤡 Meme Of The Day

ℹ️ Crypto Sources From The Crypto Fire ℹ️

🚨 Is Binance Making Traders Burn Out on April Fool's Day?

A bunch of small tokens on Binance like ACT, DEXE, DF, HIPPO, BANANA31, TST, LUMIA just flash-crashed like crazy.

• $ACT.X ( ▼ 21.28% ) dropped 49-50%

• $DEXED.X ( ▼ 8.59% ) fell 23-30%

• $DF lost 16-20%

• And $HIPPO.X ( ▼ 4.58% )  , $TST.X ( ▼ 1.66% )  , $LUMIA.X ( ▼ 9.88% ) weren’t spared either

Some bigger tokens like $KAVA.X ( ▲ 6.72% ) and $QUICK.X ( ▲ 1.58% ) were affected too, but it was really the low-cap memecoins that got hit hard.

1️⃣ Why Did This Happen?

There’s no clear culprit, but Binance seems to be the indirect cause. Here's why:

• Binance changed leverage and margin requirements for several tokens like $ACT.X ( ▼ 21.28% ) and $NEO.X ( ▼ 17.06% ) .

• This caused traders using cross-margin to be liquidated in large numbers.

• When this happened, it created a domino effect on the spot market, and the prices for these coins just collapsed.

2️⃣ Was Binance Unfair in Changing Terms?

Well, it kind of looks like it. Binance updated the terms, and they mentioned “Existing positions opened before the update will be affected.” - Updates on the Leverage & Margin Tiers of Multiple USDⓈ-M Perpetual Contracts (2025-04-01)

→ So, if you had positions open and were sleeping at that time or weren’t quick enough, your positions might have been liquidated.

This change forced traders to have more funds in their accounts to maintain leverage. If they didn’t, their positions got liquidated, leading to price crashes in low-cap tokens. 😓

3️⃣ Was There a Market Maker Behind This? 👀

Could there have been a market maker manipulating things? For large projects, sure — they have market makers. But for memecoins like $ACT.X ( ▼ 21.28% ) , it's tough to say because liquidity is low, and it’s hard for anyone to dump big amounts without Binance noticing.

After the CEO of Gotbit (a market maker) was arrested for price manipulation, market makers are being much more careful.

So, it’s unclear if a market maker is behind this crash, but Binance needs to be more transparent with what’s going on.

4️⃣ Trader Take: Is Binance Still Safe for Investors?

This incident is a warning sign for anyone using Binance, especially if you’re trading memecoins.

Binance is listing more and more memecoins that have questionable project quality. It’s not that Binance doesn’t care, but they’re trying to compete with other exchanges in a short-term game, and that means more risks for traders.

When you’re trading small-cap memecoins, you’re playing a negative-sum game, which is just a fancy way of saying you’re more likely to lose money than make it. These tokens will likely be delisted soon, so don’t wait too long to short them—or the market will sweep your account.

In this market, no one can protect you but yourself. Always be cautious, especially when trading low-cap tokens. The game is manipulated, and the risks are real.

Stay safe out there, and don’t let the hype blind you. Protect your investments. 🛡️

👀 The More We Stay in the Crypto Market, The Less We Really Know?

Ever feel like the longer you're in the crypto market, the less you really understand? 🤔 I’ve been thinking about this a lot lately, especially with the recent moves in tariffs and interest rates.

1️⃣ Stock Market & Tariffs

• The stock market has been dropping, largely due to tariff worries.

• We’ve seen the S&P 500 take a hit, and that wasn’t too surprising given the negative effects tariffs tend to have on stocks.

2️⃣ Money Moving from Stocks to Bonds

When stocks drop, investors tend to move their money into government bonds for safety. This causes bond prices to go up, which leads to a decrease in bond yields (interest rates).

• This inverse relationship between bond prices and yields is key to understanding how market shifts happen.

• As bond prices rise, the yields decrease, which is a big factor in the lowering of interest rates across the market.

3️⃣ How This Affects Mortgage Rates

The decrease in bond yields has a direct impact on things like mortgage rates.

• The 10-year US Treasury bond is particularly influential.

• Recently, mortgage rates dropped from 7% to 6.76% for a 30-year loan, showing the direct connection between bond yields and borrowing costs. 🏠

4️⃣ Interest Rates: FED vs. Bond Market

• While many thought the FED would be the one lowering rates, the bond market actually did most of the work.

• Tariffs led to a shift of money out of stocks and into bonds, pushing bond prices up and interest rates down.

5️⃣ Tariffs and Inflation

Here's an interesting perspective to consider: tariffs can drive inflation up.

• When tariffs are imposed, businesses tend to stockpile goods in anticipation of higher future prices.

• However, if these businesses can’t sell the goods, they may need to reduce prices to move inventory, which could help lower inflation. 📉

6️⃣ Unpredictability of Markets

Markets are always full of surprises. Remember how everyone thought the pandemic would bring about a global economic collapse? Well, we saw stock and crypto prices soar to new highs instead, which no one saw coming.

→ The pandemic went against all expectations—inflation and asset prices rose rather than fell.

→ These past events have taught us valuable lessons about market behavior, central bank responses, and how inflation and asset prices move.

7️⃣ Nice plan is GOLD is getting cool off. Other assets recover. BTC trendline breakout 👀

The same thing could happen now. We might be facing volatile events like tariffs, interest rate decisions, and regulatory hearings, but just as in past crises, what seems like a negative event could lead to a surprising outcome.

8️⃣ What to Look Out for This Month 📆 to help prevent risk and stay ahead of market moves:

1. ISM Manufacturing PMI Data – April 01

   Strong PMI reading = strong economic growth. A reading of 50 or above typically signals positive conditions for crypto. Right now, we’re at 50.3 — so, we’re right on the line. 👇

2. JOLTS Job Openings Data – April 01 - Like PMI, strong job openings data can signal future economic growth.

3. Trump's "Liberation Day" – April 02

   • Trump has dubbed April 2 as "Liberation Day," with rumors of 20%+ tariffs on over 25 countries.

   • This uncertainty around trade wars could lead to more market volatility

4. Fed Chair Powell Speaks – April 04

When Jerome Powell speaks, markets analyze his words and tone for insights on future rate cuts. People are closely watching for any hints on when rates might drop.

5. Hearing on Crypto Market Structure Legislation – April 9

• The US regulatory environment is starting to look more crypto-friendly, but it won’t be official until clear frameworks are passed into law.

• This hearing is an important step in that direction. 👇

6. March CPI Data – April 10

Will the rising cost of goods slow down as expected in March? The data will show if inflation is starting to ease, potentially giving the Fed a reason to cut rates sooner. 👇

Trader Take

The unpredictability of the market is a lesson we learned in past crises, and it's something we need to keep in mind as we track these upcoming events. What looks like a downturn could lead to an unexpected rally, just like we saw in 2020. Staying informed and being prepared for surprises is key.

⭐ 5 Things You Shouldn’t Miss

🚨 Bybit Web3 will shut down its NFT Marketplace, Inscription, and IDO product pages on April 8, 2025 at 23:00 as part of service optimization and trading volumes decline.

💰 GameStop raised $1.5 billion through a private offering of convertible notes to buy bitcoin. The offering includes 0.00% notes due in 2030, with an additional $200 million sold. This move mirrors Strategy's pivot to bitcoin acquisitions.

💥 Bill Barhydt, CEO of Abra and early Bitcoin adopter when it was below $5, criticized Michael Saylor’s plan to lock away 17,000 BTC in an “unsendable wallet”, calling it a strategy that “makes no sense.”

🔥 CZ just burned $1.95M worth of $TUT tokens, sparking speculation about his involvement with the project. After $TUT got listed on Binance alpha and spot, it looks like CZ may have stepped in to support it. Some are comparing this move to his previous actions with $TST and $NEIRO. With $TUT maintaining a solid price base, we could see it continue to rise.

💰 Wang Chun started mining back when $BTC Bitcoin was just a dollar. Fast forward, and he’s now the first Bitcoin hodler to make it to space.

🤡 Meme Of The Day

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This newsletter is for informational purposes only and should not be considered investment advice. Traders should conduct thorough research, understand the risks, and carefully evaluate their decisions before investing in cryptocurrency.