In a surprising twist, three lesser-known cryptocurrencies—BakeryToken (BAKE), Hifi Finance (HIFI), and Self Chain (SLF)—recently experienced sharp price surges despite Binance announcing their impending delisting. This news comes as these tokens prepare to lose the support of the world’s largest cryptocurrency exchange by trading volume.
Binance Delisting Triggers Volatility
On September 3, Binance revealed its decision to remove support for these three tokens by September 17. According to Binance, the delisting process is part of its periodic review to ensure all listed assets meet its high standards and industry compliance requirements. The news initially brought chaos: BAKE dropped 20.26%, SLF declined by 25.27%, and HIFI fell by 7.36%, reflecting heightened panic among investors regarding reduced accessibility and trading liquidity.
However, a few days later, the narrative shifted dramatically. The tokens showed a synchronized rebound during the early Asian market hours. BAKE soared by 205.5%, climbing from $0.036 to $0.11. SLF followed with a rise of 108.3%, skyrocketing from $0.024 to $0.050. HIFI saw a 62.1% increase, advancing from $0.058 to $0.094. Quite notably, Binance trading pairs, such as BAKE/USDT and HIFI/USDT, dominated the trading volumes for these tokens, with trading activity spiking dramatically.
What Drove the Unexpected Rally?
Crypto analysts have speculated that the pricing behavior is primarily driven by short-term speculative activity. One expert noted that short squeezes caused by liquidity imbalances likely triggered the dramatic price jumps. Additionally, an orchestrated effort by a group of investors may have fueled a pump-and-dump scheme. These patterns resemble previous Binance delistings, where an initial price surge was quickly followed by a steep decline.
For example, after Binance announced the delisting of Alpaca Finance (ALPACA) earlier this year, the token temporarily quadrupled in value before plunging again. Investors should take note of this precedent to avoid potential losses stemming from speculative trading.
Market Conditions After Delisting
Although the recent rally has offered a momentary lifeline to BAKE, HIFI, and SLF, the future remains uncertain. Without Binance’s support, these altcoins will rely on smaller exchanges with lower liquidity and fewer trading pairs. Historically, delisted tokens often fade into obscurity due to lower visibility and diminished investor interest. Investors considering these cryptocurrencies should remain cautious and monitor developments closely in the coming weeks.
Invest Wisely
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