Recently, Binance announced the delisting of six altcoins from its platform, leading to significant price drops for these assets. This move by the world’s largest cryptocurrency exchange has triggered sharp price crashes in the past due to various reasons such as reduced liquidity and market panic.
Binance periodically reviews each digital asset listed on its platform to ensure that it meets a high level of standard and industry requirements. Factors taken into consideration include the commitment of the team to the project, trading volume and liquidity, level and quality of development activity, stability of networks from attacks, and more. This rigorous review process ensures the best services and protections for users while adapting to evolving market dynamics.
The six altcoins that will be delisted from Binance are PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX). The delisting will take effect on August 26, and trading pairs such as CVP/USDT, EPX/USDT, FOR/BTC, FOR/USDT, LOOM/BTC, LOOM/TRY, LOOM/USDT, REEF/TRY, REEF/USDT, VGX/USDT will be removed.
Delisting cryptocurrencies from a major exchange like Binance can negatively impact their prices. Reduced liquidity, reputational damage, and subsequent panic among traders can lead to sharp price declines. Shortly after the delisting announcement, CVP, FOR, EPX, and VGX saw price drops of around 40%, while LOOM and REEF experienced declines of 14% and 23% respectively.
This is not the first time a delisting on Binance has caused a significant price crash for an affected cryptocurrency. Earlier this year, the delisting of Monero (XMR), Aragon (ANT), Multichain (MULTI), and Vai (VAI) led to a 35% drop in the price of Monero. Similarly, the termination of services for BarnBridge (BOND), Dock (DOCK), Polkastarter (POLS), and Mdex (MDX) resulted in double-digit price declines, with DOCK plummeting by around 50% in a 24-hour period.
The delisting of altcoins from major exchanges like Binance can have a significant impact on their prices. Traders and investors should be aware of the risks associated with such actions and be prepared for potential price crashes following delisting announcements.
Leave a Reply