Cryptocurrency exchange Binance plans to delist five cryptocurrency tokens by December for not complying with industry standards.
According to an announcement on November 26, Binance will delist trading pairs for Gifto (GFT), IrisNet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN) by December 10. It is planned. Arbitrage strategies, lending and futures positions for these tokens will close on December 3, while isolation and cross-margin borrowing will cease on November 27.
The announcement triggered a significant sell-off, sending the token plummeting nearly 40%, with the price down to just a few cents at the time of this writing.
According to CoinGecko, Binance is the largest cryptocurrency exchange by trading activity. There are currently 386 tokens and 1,275 trading pairs listed on the platform, and as of November 26, the exchange’s trading volume was $44 billion, an increase of nearly 20% in the last 24 hours.
The exchange did not disclose what requirements the token does not meet, but listed key factors it regularly evaluates, including the team’s commitment to the project, development quality, trading volume and liquidity, stability and safety from attacks, and responsiveness to regular due diligence. . There are requests, etc.
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GFT 7-day performance. source: CoinMarketCap
Delisted tokens represent projects targeting multiple blockchain solutions, from blockchain futures offerings to decentralized exchanges and interoperability services for decentralized finance (DeFi).
Most of these tokens have seen declining trading volumes over the past few months. According to data from CoinMarketCap, REN’s trading volume declined actively from $34 million in March to nearly $6 million in early November, while OAX trading volume fell from a peak of $101 million in March to $468,000 in October.
Low trading volume is often a red flag for both the project and its holders, as it indicates low liquidity and lack of adoption.
On a Telegram channel, some members of the Gifto community criticized the developer for not sharing updates about the project on social media. “I lost more money on this project and gave up because the developers didn’t post anything on social media about the issue,” said one member.
Binance warned users that deposits of these tokens will not be credited after December 11th, and withdrawals will not be supported after December 12th. According to the exchange, after December 13, tokens can be converted to stablecoins on behalf of users. , there is no guarantee.
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