Binance Delisting Wipes Out 40% Value from Five Tokens

Crypto News Exchanges

Binance Cut Ties: Delisting Wipes Out 40% Value from Five Tokens

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 26, 2024

Key Takeaways

Binance plans to delist five tokens by December, citing failure to meet industry standards, causing their values to drop by 40%;
Platform operations for the affected tokens will end in stages, with trading halted by December 10 and withdrawals ceasing December 12;
Criticism mounts as users blame lack of project updates and poor communication for the delisting and token value collapse.

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Binance Cut Ties: Delisting Wipes Out 40% Value from Five Tokens

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Binance $8.18B , a leading cryptocurrency exchange, announced its decision to remove five tokens from its trading platform by mid-December, stating the tokens' inability to meet certain industry benchmarks.

As per the statement released on November 26, trading pairs for OAX OAX $0.0012 , IRISnet IRIS $0.0007 , SelfKey KEY $0.0002 , Gifto GTO $0.0000749 , and Ren REN $0.0075 will be unavailable starting December 10.

Platform operations related to these tokens, such as arbitrage activities, loans, and futures, will cease earlier, on December 3. Additionally, borrowing for both isolated and cross-margin trading involving these tokens will halt on November 27.

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The announcement led to a sharp decline in the tokens' market value, with each plummeting roughly 40%. Currently, the tokens are trading at significantly lower prices, measured in mere cents.

While the exchange refrained from providing explicit details about the shortcomings of the delisted tokens, it emphasized some of the critical criteria used for evaluations. These include project commitment, development progress, trading activity, liquidity, security against vulnerabilities, and responsiveness to due diligence procedures.

The delisting has also fueled criticism within affected communities. In a Telegram discussion, Gifto community members expressed frustration:

I lost more dollars in this project and gave up because the devs don’t even post anything regards to this issue on their social media.

According to Binance's announcement, deposits of these tokens will no longer be processed after December 11, and withdrawals will cease after December 12. Following December 13, the platform may convert these assets into stablecoins for users, though it clarified that such conversions are not guaranteed.

Binance's delisting decision isn't the only chaos rocking the crypto world this week. Just days ago, a flash crash involving 5,200 WBTC sent shockwaves through the market. What caused this dramatic plunge? Read the full story.