Things have turned around for CyberConnect (CYBER), which debuted on Binance Launchpad and led the week’s gains. Following the liquidity crisis, Binance struggled with the price falling by double digits.
CyberConnect (CYBER) started to erase all gains following the latest developments
Things turned around for CYBER, a Binance-backed project, in just 24 hours. The altcoin, which made ATH on September 1, fell by double digits today after a sudden liquidity crisis. As Kriptokoin.com, we included the reasons behind the decline in this article.
Just a day ago, CYBER recorded a new high of $15 on Upbit. As seen from the chart below, its price is currently trading down 18% to the $8 region. In its first move, Binance reduced the leverage rates for CYBER…
Binance reduces CYBER leverage ratios
Recently, Binance Futures announced that it will update CYBERUSDT U leverage rates. The stock market is reducing leverage for CYBER tonight at 23:30. The remaining open positions must be closed before this date. Binance stated that remaining open positions will be automatically closed.
#Binance Futures will adjust the leverage and margin tiers of the USDⓈ-M CYBERUSDT Perpetual Contract at
🗓 Sep 2 2023, 10:30 (UTC)
Read more ⤵️https://t.co/EIVLVyNzD5
— Binance Futures (@BinanceFutures) September 2, 2023
Leveraged positions allow users to take positions with a determined multiplier in return for collateral. These include odds such as 10x, 7x or 5x. With the latest announcement, Binance is updating the leverage rates for CYBER with the following rates. Accordingly, the 11x leverage was updated to 7-8x. This decision will provide more stability for the altcoin.
Why is CYBER price falling? Will the Binance move be enough?
CyberConnect announced today that its highly anticipated proposal, CP-1, has been rejected. CyberConnect’s official Twitter account @CyberConnectHQ said:
There was an error in the CP-1 snapshot proposal and was therefore rejected. The intended use of the Community Treasury to provide liquidity was 1,088,000 CYBER, which was already unlocked.
There was a mistake in the snapshot proposal CP-1 and so it was rejected. The intended usage of Community Treasury for providing liquidity was 1,088,000 CYBER which was unlocked already.
— CyberConnect (@CyberConnectHQ) September 2, 2023
The main purpose of the CP-1 offering was to increase the liquidity of the CYBER token on the Ethereum (ETH), Binance Smart Chain (BSC) and Optimism networks. According to the announcement:
To optimize CYBER liquidity on ETH, BSC, Optimism networks, we propose a set of active balancing strategies for CYBER token on these networks.
New active balancing strategy
A number of active balancing strategies were outlined in the proposal, including:
- Deployment of Bridges: The plan was to deploy CYBER-ETH, CYBER-BSC and CYBER-OP bridges powered by LayerZero’s ProxyOFT. This will allow users to bridge CYBER from any network to another via Stargate.
- Use of Community Treasury: The CyberConnect foundation intended to use 1,088,000 unlocked CYBER tokens from the Community Treasury to provide liquidity to these bridges. The Foundation aimed to have 25,000 CYBERs on each of the CYBER-ETH, CYBER-BSC and CYBER-OP bridges.
- Supply Maintenance: In the event of a liquidity issue on any of the networks, the foundation will burn and mint cross-chain CYBER tokens to ensure a balanced supply. The total supply of CYBER tokens across all networks will remain constant at 100,000,000.
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