Binance Adds Isolated Margin Trading for DIA, Reserve Rights Token (RSR), Ocean Protocol (OCEAN)
by Omar Faridi
Binance, the world’s largest digital asset exchange, recently enabled isolated margin trading for DIA, RSR, and OCEAN.
Margin trading involves using borrowed digital assets or other funds from a broker to trade financial assets. In other words, margin is like assets borrowed from a broker to acquire an investment. It’s the net difference between the value of securities held by an investor and the outstanding loan amount from the broker.
When we buy on margin, it’s like borrowing funds to acquire securities. But when dealing with speculative cryptocurrencies, the assets may not be regulated as securities.
There’s been a significant increase in the overall trading volume in the loosely regulated crypto markets in recent months. Many major exchanges like Binance and Coinbase have been listing risky coins in order to generate more revenue when traders are a lot more active than usual.
It remains unclear why Binance has listed DIA, which is not even ranked in the top 100 cryptocurrencies by market cap. According to CoinGecko data, DIA market capitalization stands at just over $64 million at the time of writing and each token is trading for around $2.50.
Based on its recent trading activity, it appears DIA has been used to engage in risky and speculative trading. On September 2, 2020, the DIA token reached an all-time high of $5.13 which is over twice its current trading price.
As noted on its website, DIA or Decentralized Information Asset aims to serve as an open-source oracle platform that allow market participants to source, supply and share trustable data. It’s worth noting that most of these so-called decentralized projects don’t really end up offering long-term, viable solutions. These highly speculative coins have mainly been used during the past few years to encourage trading activity so that exchanges can generate more revenue.
RSR, which is another token now available on Binance for isolated margin trading, stands for “Reserve Right Token.” It has a market cap of over $124 million with each RSR trading for a little over $0.01 at the time of writing.
As explained on its website, Reserve is a “flexible pool of stablecoins designed to reduce risk through diversification and decentralized governance.” Reserve’s investors reportedly include Sam Altman, president at YCombinator and co-founder at OpenAI. Coinbase Ventures, Peter Thiel, among others have also invested in this project.
The OCEAN utility token is also available now for isolated margin trading on Binance. It’s used as “a unit of exchange for buying and selling data and AI services.” OCEAN tokens can be transferred between Ethereum and Ocean networks.
(Note: for more details on these new trading pairs and and additional information about margin trading, check here.)