Coinspeaker Binance to Delist Six Tokens, Sparking Major Price Drop
After its routine periodic token review, renowned crypto exchange platform Binance is delisting six cryptocurrencies. The tokens affected by this decision – PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX) – are set to be removed from Binance on August 19. This delisting news has already led to a significant drop in the value of these tokens.
Binance has suggested its users take immediate action, as all open trade orders will be removed once trading stops. Notably, it is disabling the deposit service for these tokens from August 27, and withdrawals will not be allowed beyond November 26.
Binance’s Simple Earn, Auto-Invest, and Margin services will also gradually phase out support for these tokens, with key deadlines starting as early as August 20, 2024. Binance urged its users to move their holdings from margin wallets to spot wallets to avoid possible losses.
Binance Buy and Sell Crypto and Binance Pay platforms will also stop supporting these tokens from August 21.
This delisting decision comes as part of Binance’s routine periodic review, which aims to ensure that all digital assets listed on the platform meet the exchange’s stringent standards. Factors considered in this review include the development activity of the project, liquidity, trading volume, and overall network security.
Impact on Market
In the hours following the announcement, the market reacted swiftly. CVP saw its value plunge by 25%, dropping from $0.31 to $0.23 in less than two hours. The token’s market cap also shrank by over 31% within the same period. Similarly, EPX experienced a sharp decline, with its price falling by more than 30% from $0.00011 shortly after the news broke.
FOR faced an even steeper drop, losing over 40% of its value in the past 24 hours, now trading around $0.0092. VGX Token also saw a dramatic fall, currently valued at $0.038, down by more than 30% in just a few hours.
The impact on LOOM and REEF has been slightly mitigated by Binance’s clarification that USDⓈ-M LOOMUSDT and REEFUSDT Perpetual Contracts trading will remain unaffected by the delisting. Despite an initial drop, LOOM and REEF have regained some value. However, they are still down by more than 10% and 20%, respectively, over the past 24 hours.
Recent Listings and Delistings
Binance has consistently removed the inactive trading pairs from its platform this bull cycle. On July 24, it delisted AVAX/TUSD, MATIC/TUSD, and VOXEL/BTC spot trading pairs. Moreover, on July 22, the exchange removed the MDX/USDT spot trading pair on its platform.
Meanwhile, the exchange has also listed several cryptocurrencies this year. Last week, it revealed plans to list four Toncoin (TON) trading pairs on its platform. The announcement resulted in a 10% surge in TON’s value within hours.
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Binance to Delist Six Tokens, Sparking Major Price Drop