VeChain Drops 13% After Binance Announces Support for Swap
Binance and Gate.io have announced they will support the VeChain swap. The price of VEN, the token version being replaced, has declined by 13%.
VeChain (VEN) touched on Friday its lowest point since December 27, 2017, losing over 13% in the last 24 hours. The slide seems to be the result of investors worrying about the ongoing drastic changes.
On Thursday, Binance announced it was supporting VeChain’s token swap as the cryptocurrency rebrands by leaving the Ethereum blockchain and shirting to a new distributed ledger system called VeChain Thor. Also, the ticker will change from VEN to VET. VeChain holders are invited to exchange the old tokens for the new ones within three months.
In a blog post published on Thursday, Binance said it would support the mainnet swap by taking the following steps:
All deposits and withdrawals in VEN will no longer be supported starting from Sunday, July 22 at 0:00 am UTC, which is when Binance starts the swap.
Investors will not be able to trade any VEN pairs starting from Monday, July 23, at 4:00 am UTC. A snapshot with all VEN balances will be taken at that time, and the exchange will start distributing VET tokens at a ratio of 1 VEN to 100 VET.
Traders will be able to open positions in VET/BTC, VET/ETH, VET/BNB, and VET/USDT pairs starting from Wednesday, July 25, at 4:00 am UTC. This is when Binance will begin supporting deposits and withdrawals for VET. Once VET trading opens to investors, the exchange will completely delist all VEN trading pairs.
According to Coinmarketcap data, Binance has accounted for over 80% of VEN trading in the last 24 hours, so the announcement had a massive impact on the community.
The same measures were announced on Thursday by Gate.io, the only difference being that VET trading will be open on Tuesday, July 24, at 4:00 am UTC.
VeChain is in free fall as investors are afraid of the unknown. They are likely to wait for a while to see how the new mainnet works. The cryptocurrency has lost 50% from its monthly peak of $2.80.
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