Binance, the world’s largest cryptocurrency exchange, recently announced the delisting of six altcoins from its platform. This decision has had a significant impact on the prices of these assets, leading to sharp price drops in a short period of time.
Binance periodically reviews each digital asset listed on its platform to ensure that they meet a high standard and industry requirements. Factors such as team commitment, trading volume, development activity, network stability, and more are taken into consideration. When a coin or token no longer meets these standards or the industry landscape changes, Binance conducts a more in-depth review and potentially delists it.
The altcoins delisted by Binance include PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX). The delisting will come into effect on August 26, with specific trading pairs being removed from the platform.
Delisting cryptocurrencies from a major exchange like Binance can negatively impact their prices due to reduced liquidity, reputational damage, and subsequent panic among traders. As a result of the announcement, all six altcoins experienced significant price drops. CVP, FOR, EPX, and VGX were down by approximately 40% on a daily scale, while LOOM and REEF also saw declines of 14% and 23%, respectively.
This is not the first time that a delisting on Binance has triggered a substantial price crash for an affected cryptocurrency. Earlier this year, the exchange terminated services with Monero (XMR), Aragon (ANT), Multichain (MULTI), and Vai (VAI), leading to a 35% drop in the price of Monero. Similarly, the delisting of BarnBridge (BOND), Dock (DOCK), Polkastarter (POLS), and Mdex (MDX) caused double-digit declines in their prices, with DOCK plummeting by around 50% on a 24-hour scale.
The delisting of altcoins from Binance can have a significant impact on their prices, often leading to sharp price drops. Traders and investors should be aware of the risks associated with investing in cryptocurrencies that are at risk of being delisted from major exchanges like Binance.