December 18, 2024
Binance, the world's largest cryptocurrency exchange by trading volume, has announced the delisting of spot trading pairs for three altcoins.
The move is expected to go into effect on December 25 at 03:00 UTC, and reflects Binance’s attempts to improve market quality.
What do Binance users need to do?
Binance periodically reviews the performance of its listed trading pairs, analyzing a variety of factors to determine listing and delisting actions. It evaluates elements such as the team’s commitment to the project, the level and quality of development activity, and the stability of the network and smart contracts.
Based on the above, among other criteria, the exchange removes tokens and trading pairs that do not meet liquidity and trading volume thresholds. The exchange claims that these measures protect users and maintain a high-quality trading environment.
“When a coin or token no longer meets these standards or the industry landscape changes, we conduct a deeper review and may delist it. Our priority is to ensure the best services and protection for our users while continuing to adapt to evolving market dynamics,” Binance said.
In this context, the leading exchange has committed to delisting trading pairs for Kaon’s energy token, AKRO (formerly Acropolis), Bluezil (BLZ), and WazirX (WRX). Specifically, the exchange will automatically remove and terminate orders for the following pairs:
AKRO/USDT
BLZ/BTC
BLZ/USDT, and
WRX/USDT
Furthermore, Binance clarified that token valuations will not be displayed in users’ wallets after the delisting. Deposits of these tokens will not be credited to users’ accounts 24 hours after the official delisting. Users have until February 25, 2025, 03:00 UTC, to withdraw the affected tokens from Binance.
Immediately following this announcement, the prices of AKRO, BLZ, and WRX tokens dropped by double digit percentages, between 11% and 48%. This result reflects the impact of the tokens being delisted from major exchanges.
It’s no surprise, given Binance’s history of detox announcements that have often led to volatility. For example, Binance’s delisting of six altcoins in August led to significant price drops for those coins. Notably, Powerpool (CVP) and Ellipsis (EPX) saw drops of 14% and 22% immediately following the delisting announcement.
Similarly, in late November, Binance’s announcement that it was delisting altcoins led to significant price drops for GFT, IRIS, KEY, OAX, and REN. Such results stand in stark contrast to listing announcements, which often lead to a spike in the tokens in question.