The price of LQTY, the native token for Liquity, a decentralized borrowing platform, jumped by 46% after a listing announcement by Binance. LQTY rose from $1.4208 to $2.075 in less than one hour before making a brief retracement to trade at $1.85 at the time of writing.
Binance announced it would list Liquity (LQTY) in the Innovation Zone of its platform and open trading for a set of spot trading pairs at 11:00 (UTC) on February 28, 2003. According to the announcement, the spot trading pairs to be activated are LQTY/BTC and LQTY/USDT.
In the announcement, Binance noted that before the spot trading launch, users could make LQTY deposits in preparation for the trading exercise. It noted that withdrawals for LQTY will activate by 11:00 on March 1, 2023, exactly 24 hours after trading begins. However, the exchange added a caveat that the withdrawal activation time is an estimated reference, as users may need to visit the withdrawal page to ascertain the actual status of the process.
Binance also announced the addition of LQTY as a new borrowable asset on an isolated margin. The exchange projects this functionality to activate within 48 hours of listing.
According to data from Coinmarketcap, LQTY responded to this announcement with a sudden jump in price from $1.4208 to $2.075 in less than one hour. The market capitalization also spiked from $129.31 million to $186.91 million, while the trading volume rose from $5.79 million to $8.27 million during the same period.
Liquity is a decentralized borrowing platform where users can deposit ETH as collateral and borrow the LUSD stablecoin. The platform’s native utility token, LQTY, will function as a staking tool and be used for liquidity mining.
Binance reminded its users of some of the characteristics of its Innovative Zone, noting that it is a trading environment characterized by high volatility, considering the category of tokens listed therein. The Zone consists of new and innovative digital tokens.
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Source: Cryptocurrency - investing.com
