In the fast world of cryptocurrencies, Binance’s influence on price movements has come to the fore once again, this time with the altcoin Loom Network (LOOM). Binance’s announcement that it would list LOOM on futures sparked a series of sharp and volatile price movements, keeping traders and investors on edge. Here are the details…
Binance announcement affected the price of this altcoin
Binance, a giant in the cryptocurrency exchange field, is known for its ability to influence the fate of crypto assets with the decisions it makes. Altcoin futures listings on the platform have historically led to significant price swings. However, LOOM’s journey took a different turn this time. Binance’s decision to list LOOM on futures sent shockwaves through the crypto community. LOOM showed a significant 10% increase in value almost immediately. The increase in price was a testament to the power of the Binance effect, a phenomenon where the exchange’s announcements can lead to significant price movements.
However, the crypto market is famous for its unpredictability, and LOOM’s fate was no different. Soon after the initial surge, the altcoin witnessed a rapid decline and erased all gains within a few hours. This rollercoaster ride has left traders and investors scrambling to make sense of the situation and highlighted the inherent risks and rewards in the cryptocurrency market. Currently, LOOM is changing hands for $0.19. The coin reached its highest level on a daily basis at $0.20.
Loom Network offers different services
The Blockchain platform in question, Loom Network, offers a unique value proposition in the Blockchain space. As a Platform as a Service (PaaS) solution, it specializes in enabling sidechain development for Ethereum-based applications. Loom’s philosophy revolves around the idea that decentralized applications (dApps) have different requirements when it comes to consensus mechanisms and security measures. In this context, Loom Network facilitates faster and more efficient scaling by empowering developers to create and enforce their own rules.
Initially, Loom Network focused primarily on Blockchain-based social media and gaming dApps. However, it has since shifted its business model to focus on serving the needs of enterprise blockchain applications, particularly for government agencies and healthcare providers. In this ecosystem, LOOM, the native ERC-20 token of Loom Network, plays a crucial role as the utility token that powers the platform. The sharp price movements experienced by LOOM are indicative of the dynamic nature of the cryptocurrency market, where factors such as exchange listings and market sentiment can cause rapid and significant fluctuations.
