CREAM registered a sharp reversal rally on Wednesday as traders assessed its listing on Binance, the world’s largest cryptocurrency exchange by volume.
The Malta-based trading platform will quote CREAM / BNB and CREAM / BUSD trading pairs at 1300 UTC, according to its Announcement. That allows users to effectively deposit and trade their CREAM tokens against Binance Coin and US-regulated stablecoin BUSD.
CREAM / USD was up nearly 54 percent in just three hours of trading after Binance’s stock exchange listing. The pair reached an intraday high of $ 120.85.
CREAM/USD hits fresh intraday high after Binance listing. Source: TradingView.com
Profits also came after a long and depressing price action in the CREAM market. The token rose from just $ 0.001 to $ 279.45 last week. The upward movement was based on the growing craze for decentralized financing projects.
CREAM is part of a decentralized credit platform called Cream Finance. It serves as the governance token for a protocol that users can borrow or lend from a pool of assets without permission. So “rather than having interest rates set by individuals,” Cream Finance determines them “algorithmically based on the proportion of assets lent.”
The business model was similar to that of Compound.
CREAM continued to become the conscience of “yield hunters” after Binance decided to support its protocol on its newly launched blockchain, Binance Smart Chain. That effectively protected Cream Finance against the high gas costs of its previous blockchain Ethereum.
But despite its strong fundamentals, cracks began to appear in the DeFi token’s market techniques. CREAM / USD fell victim to a massive dumping drill that started at the all-time high of $ 279.45. A profitable wave began, crashing the pair 73 percent from 0600 GMT today.
It only recovered sharply after news of the Binance listing hit the thread. That caused many in the cryptocurrency industry to worry about CREAM’s erratic, pump-and-dump price movements.
Netherlands-based market analyst Michaël van de Poppe was quick to respond to the nature of CREAM’s listing on Binance, arguing that the exchange was trading too fast to list a token that was ‘rubbish’.
“I honestly don’t understand that projects take months to get a potential listing on Binance,” he said. ‘But then, complete waste $ CREAM and $ SUSHI is immediately mentioned for a nonsensical reason that it is ‘becoming obsolete’. A complete sh ** show for crypto and space. “
CREAM Trend ahead
Some meanwhile argued that Binance was trying to compete with emerging decentralized exchanges like UniSwap in the race to list DeFi tokens.
Concerns were also loud, as Cream Finance confessed earlier today about a critical software bug in the source code. The DeFi platform said in a series of tweets that it has interrupted its stakeout mechanism due to a so-called ‘input error’.
The bug resulted in a faster than expected distribution of CREAM tokens: 25,000 per day, instead of the previously defined 2,500 per day in the crCREAM Staking platform.
Cream Finance assured that all locked bets were safe. The liquidity pool currently contains $ 310.92 million worth of Ethereum and WBTC tokens.
Overall, CREAM / USD is trading in a very risky area which amounts to larger price corrections. The pair’s lack of historical trading data makes it difficult to gauge future trends. The only perk that remains is the hype surrounding the DeFi space.