Binance recently made an announcement that it will be halting trading services for certain cryptocurrencies, which has caused a significant drop in the prices of those assets. Some of the tokens that will be affected include OmiseGO (OMG), Waves (WAVES), Wrapped NXM (WNXM), and NEM (XEM). Withdrawals for these assets will not be supported after September 17, with the possibility of the delisted coins being converted into stablecoins on behalf of the users after September 18.
The discontinuation of trading services for these tokens will directly impact the users who are holding them on the platform. Binance has provided a deadline for users to redeem their Flexible and Locked Products positions before the delisting takes place. Failure to do so will result in the automatic redemption of these positions and the transfer of funds to the users’ Spot Wallets, along with any accrued rewards.
Binance did not provide a specific reason for the delisting of these tokens, but it stated that it periodically reviews each listed cryptocurrency to ensure that it meets a “high level of standard and industry requirements.” Factors such as the team’s commitment, development activity, trading volume, liquidity, and more are taken into consideration during these reviews.
Following the announcement of the delisting, some of the affected tokens saw a significant drop in price. Tokens like OMG and WAVES experienced double-digit declines, while XEM plummeted by over 30% on a 24-hour scale. Currently, XEM is trading at a seven-month low of approximately $0.025 according to CoinGecko’s data. This shows the immediate impact that delisting can have on the price performance of a cryptocurrency.
This is not the first time that Binance has delisted tokens, and historical data shows that such actions can have a negative impact on the price and perception of the affected tokens. In February, Binance halted trading services with Monero (XMR) and three other altcoins, leading to a drop of over 20% in XMR’s valuation shortly after the announcement. This highlights the potential risks associated with delisting from a major trading platform.
In addition to the delisting announcement, Binance has made several other changes to its platform in recent days. The introduction of new trading pairs such as BTC/MXN, XRP/MXN, ENS/USDC, and LDO/USDC aims to enhance the user experience and respond to the latest market trends. However, the removal of previously listed pairs like CAKE/TUSD, DYDX/BNB, and LAZIO/BTC shows that Binance is constantly adjusting its offerings to meet the evolving needs of its users.
Binance’s decision to delist certain tokens has had a significant impact on the price performance of these assets. The lack of a specific reason behind the move and the potential risks associated with delisting highlight the importance of conducting thorough reviews before investing in cryptocurrencies. Users should stay informed about platform updates and be prepared for potential changes in the market as a result of such announcements.