Delisting crisis in Reef coin: Investors victimized
After Binance's decision to delist Reef coin, investors faced a difficult process due to price differences and withdrawal problems.
Binance decided to remove Reef (REEF) coin from its platform on August 26, 2024. After this decision, the value of Reef coin decreased rapidly, and an unexpected increase in price began shortly thereafter. However, the increase only occurred on exchanges that support Reef coin's ETH network. Because Binance exchange only allowed withdrawals through the BSC network. This created selling pressure and caused price differences on exchanges such as MEXC and Paribu, which also support the BSC network. With the increase in the markets, the buy orders coming to the coin were through the ETH network and not the BSC network, and therefore, 2 different prices were formed for the same coin.
With Binance delisting REEF, the number of platforms supporting the BSC network has decreased. This has eliminated the opportunity for investors to perform arbitrage, causing token prices on the BSC and ETH networks to move differently.
The situation was first noticed by exchanges and then by social media users. Exchanges made statements that they were investigating the issue. For example, the statement of the Paribu Support Team on September 16 regarding the issue being investigated is as follows:
âA malfunction was detected in the Reef (REEF) withdrawal transactions made from the ERC-20 network. Our technical team is investigating the issue.â
