Recently, Binance, the world’s largest cryptocurrency exchange, made a significant announcement regarding the delisting of six altcoins from its platform. The delisted altcoins include PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX). This decision is part of Binance’s periodic review process to ensure that each digital asset listed on its platform continues to meet industry standards and requirements.
Binance takes various factors into consideration when reviewing digital assets for potential delisting. These factors 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. When a coin or token no longer meets these standards or when the industry landscape changes, Binance conducts a more in-depth review and potentially delists the asset.
The delisting of cryptocurrencies from a major exchange like Binance can have a significant impact on their prices. The reasons for this impact include reduced liquidity, reputational damage, and panic among traders. As a result of the recent delisting announcement, all six altcoins experienced sharp price drops. CVP, FOR, EPX, and VGX saw declines of approximately 40% on a daily scale, while LOOM and REEF experienced more modest declines of 14% and 23%, respectively.
This is not the first time that a delisting on Binance has led to a substantial price crash for an affected cryptocurrency. Earlier this year, Binance delisted Monero (XMR), Aragon (ANT), Multichain (MULTI), and Vai (VAI), resulting in a 35% drop in the price of Monero. Similarly, the delisting of BarnBridge (BOND), Dock (DOCK), Polkastarter (POLS), and Mdex (MDX) caused double-digit crashes in the prices of these cryptocurrencies, with DOCK plummeting by around 50% on a 24-hour scale.
The delisting of altcoins from major cryptocurrency exchanges like Binance can have a significant impact on the prices of these assets. Traders and investors need to closely monitor exchange announcements and be prepared for potential price fluctuations resulting from delisting decisions.