RedStone Surges 400% on Binance, Triggers Circuit Breaker

RedStone (RED) surged to $0.8 in pre-market trading on Binance, triggering the exchange's upward circuit breaker mechanism. The mechanism, designed to manage price fluctuations, was activated due to the token's price reaching 400% of its initial value of $0.2. The pre-market price limit will be lifted after 18:00 UTC+8 on March 3rd.

The circuit breaker is structured in phases, with the price limit capped at 200% of the opening value from February 28 at 18:00 UTC+8 to March 1 at 17:59 UTC+8. This was followed by a cap of 300% until March 2 at 17:59 UTC+8, and finally reaching 400% until March 3 at 17:59 UTC+8. After this point, no restrictions will be applied, allowing the market to react freely.

Binance had previously implemented this mechanism to mitigate excessive volatility. Prior to market listing, users can hold a maximum of 5,000 RED tokens. As this upward limit mechanism is currently experimental, its future applicability in other token listings remains to be confirmed.