Binance decided to remove Reef (REEF) from its platform on August 26, 2024. After this decision, the value of Reef coin dropped rapidly and a sudden increase in price started soon after. However, this increase only occurred on exchanges that supported Reef coin's ETH network.

Because Binance only allows withdrawals through the BSC network. This creates selling pressure and causes price differences on exchanges like MEXC and Paribu, where the BSC network is also supported. When the market is bullish, the orders to buy this coin come from the ETH network and not from the BSC network, resulting in 2 different prices for the same coin.

With Binance delisting REEF, the number of platforms supporting the BSC network has decreased. This situation has eliminated the opportunity for arbitrage traders, causing the token prices in the BSC network and ETH to fluctuate differently.

The situation was first brought to the attention of stock exchanges and then by social media users. Stock exchanges issued statements that investigations were being carried out on the matter. For example, on September 16, the Paribu Support Team stated that the issue was being investigated as follows:

“A glitch has been detected in Reef (REEF) withdrawals made on the ERC-20 network. “Our technical team is investigating the issue.”

The reason for this seems to be that the Reef team has closed the arbitrage route and has not established a bridge from BSC to ETH or from BSC to their own network. That is why there is a price difference of almost 60% between the price on the BSC network and the price on the ETH network.

While users are left wondering what to do in this situation, the Paribu team released a statement this morning saying they are continuing discussions with the Reef team to find alternative solutions to convert users’ assets in the BSC network.

“Since there is no suitable bridge infrastructure to use to transfer REEF balances across different networks, REEF withdrawals made over the ERC-20 network will be disrupted. “Our engineering team continues to discuss with the Reef team to come up with alternative solutions to this issue.”

Sources we reached from Paribu also confirmed the statement and said that Reef has been contacted, but the Reef team has not yet integrated Reef Chain and has not taken action to migrate Reef tokens on the BSC network. The MEXC exchange and the Reef team we contacted on the matter have yet to respond.

Investors and industry representatives on social media criticized the Reef team for not building a bridge between the BSC and ETH networks. It was also argued that this situation prevented investors from selling when the price rose and increased the price gap.

DYOR! #Write2Win #Write&Earn #Write2Learn #Write2Earn!