Binance announces delisting of 5 tokens on December 10
Due to non-compliance with industry standards, cryptocurrency exchange Binance plans to delist five tokens by December 10.
According to CoinGecko, Binance is the largest cryptocurrency exchange in terms of trading volume. Its platform currently lists 1,275 trading pairs and 386 tokens. As of Nov. 26, the exchange's trading volume was $44 billion, up almost 20% from the day before.
Binance to delist OAX, IRIS, REN, GFT, and KEY
A statement released on November 26 states that Binance will delist trading pairs for OAX (OAX), IRISnet (IRIS), Ren (REN), Gifto (GFT), and SelfKey (KEY) by December 10 at 03:00 UTC. By that time, trading pairs linked to the tokens—such as GFT/USDT, IRIS/USDT, KEY/USDT, OAX/BTC, OAX/USDT, REN/BTC, and REN/USDT—will also be removed. The tokens' spot market trading will end on November 6.
On December 3, all futures positions, loans, and arbitrage strategies involving these tokens will be closed. On November 27, isolated and cross-margin borrowings will be suspended. Users were alerted by Binance that withdrawals of these tokens would not be permitted after December 12 and that deposits would not be credited after December 11. The exchange claims that after December 13, users may convert the tokens into stablecoins. But there's no assurance.
Price of tokens drops by almost 40%
As a result of the announcement, there was a massive sell-off, which caused the tokens to fall by almost 40%. As of this writing, the prices had fallen to just cents.
Within minutes of the Binance announcement, IRIS dropped 36.75%, according to CoinMarketCap data. At the moment, its price is $0.0109. KEY experienced a comparable decline, falling 30.20% to $0.002643 during that time frame. The highest drop was seen by GFT, which fell 37.26% soon after the Binance announcement. Next in line was OAX, which dropped 36.90% to $0.1073. REN fell 24.43%, continuing the trend.
Binance explains decision to delist token
The exchange listed important factors that it regularly assesses, such as the team's dedication to projects, development quality, trading volume, and liquidity, as well as stability and safety from attacks and responsiveness to periodic due diligence requests, among other things. However, it did not reveal which requirements the tokens do not meet.
Delisted tokens trading volume drops
For both projects and holders, a low trading volume is frequently a warning sign because it suggests low liquidity and lack of adoption. In recent months, the trading volumes of the majority of these tokens have decreased. While OAX volume decreased from a peak of $101 million in March to $468,000 in October, REN's trading activity decreased from $34 million in March to almost $6 million in early November, according to data from CoinMarketCap.
Disclaimer
This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.