Sep 16, 2020 16:50 UTC
Sep 16, 2020 at 16:50 UTC
CREAM recorded a sharp reversal rally on Wednesday as traders evaluated its listing on Binance, the world’s major cryptocurrency exchange by volume.
Malta’s trading platform will list CREAM/BNB & CREAM/BUSD trading pairs at 1300 UTC, per its declaration. That will enable users to effectively deposit & trade their CREAM tokens against Binance Coin & US-regulated stablecoin BUSD.
CREAM/USD surged by almost 54 per cent in just 3-hours of trading after the Binance listing. The pair hit an intraday high at $120.85.
The advances also came after a long & depressive price action in the CREAM market. The token last week gathered from as low as $0.001 to as high as $279.45. Its upside move took cues from the mounting craze for decentralized finance projects.
CREAM is part of a decentralized lending stage called Cream Finance. It assists as the governance token for a protocol that users to borrow or lend from a pool of assets permissionless-ly. So “rather than interest rates being set by individuals,” Cream Finance determines them “algorithmically built on the proportion of assets lent out.”
CREAM raised further into the conscience of “yield hunters” after Binance decided to support its protocol on its newly-launched blockchain, Binance Smart Chain. That effectively protected Cream Finance from its previous blockchain Ethereum’s high gas fees.
Nevertheless, despite its strong fundamentals, fracture started appearing in the DeFi token’s market technicals. CREAM/USD became the prey of an enormous dumping exercise that began at its $279.45-high. A profit-taking spree started & crashed the pair by 73 per cent as of 0600 GMT today.
It recovered sharply only after the news of the Binance entry hit the wire. That left many in the cryptocurrency industry worried about CREAM’s erratic, pump-and-dump price moves.
Netherlands-based market predictor Michaël van de Poppe was speedy to remark on the nature of CREAM’s listing on Binance, disagreeing that the exchange acted too quickly to list a token which was “garbage.”
“I sincerely don’t understand the fact of projects needing months to get a potential listing on Binance,” he said. “But, then, complete garbage like $CREAM & $SUSHI gets listed instantly with a bullshit reason of ‘becoming obsolete’. A complete sh**show for crypto & space.“
CREAM Trend Forward
Some, in the meantime, argued that Binance was trying to compete with emerging decentralized exchanges like UniSwap in the race of listing DeFi tokens.
The apprehensions were loud also as the Cream Finance acknowledged earlier today about facing a critical software bug in its source code. The DeFi stage held in a series of tweets that it stopped its staking mechanism due to a so-called “input error.”
The bug prompted in a faster-than-expected distribution of CREAM tokens: 25,000 per day, in its place of the earlier defined 2,500 per day in the crCREAM Staking platform.
Cream Finance guaranteed that all the sealed stakes were safe. Its liquidity pool is currently holding $310.92 million worth of Ethereum & WBTC tokens.
General, CREAM/USD trades in a highly-risky area that totals to more extensive price alterations. The pair’s deficiency of historical trade data makes it problematic to gauge its future trends. The solitary upside that relics are the hype adjacent to the DeFi space.