Important Binance Announcement Concerning These 6 Altcoins

TL;DR

• Binance will delist six altcoins, leading to significant price drops for these assets.
• Such efforts have historically triggered sharp price crashes due to various reasons such as reduced liquidity and market panic.

The Latest Update

The world’s largest cryptocurrency exchange periodically reviews each digital asset listed on its platform to ensure that it “continues to meet a high level of standard and industry requirements.” 

“When a coin or token no longer meets these standards or the industry landscape changes, we conduct a more in-depth review and potentially delist it. Our priority is to ensure the best services and protections for our users while continuing to adapt to evolving market dynamics,” it explained.

The company takes various factors into consideration, such as commitment of team to project, trading volume and liquidity, level and quality of development activity, stability of networks from attacks, and more.

Following the latest reviews, it decided to suspend all operations with six altcoins. Namely, those are PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX). The delisting will come into effect on August 26. 

“The exact trading pairs being removed are: CVP/USDT, EPX/USDT, FOR/BTC, FOR/USDT, LOOM/BTC, LOOM/TRY, LOOM/USDT, REEF/TRY, REEF/USDT, VGX/USDT. All trade orders will be automatically removed after trading ceases in each respective trading pair,” Binance explained.

Delisting cryptocurrencies from such a major exchange can negatively impact their prices due to reduced liquidity, reputational damage, and subsequent panic among traders.

As such, it is no wonder that all of the involved coins headed south shortly after the announcement. CVP, FOR, EPX, and VGX are all down by approximately 40% on a daily scale. LOOM and REEF have also tumbled, albeit in a more modest fashion, registering declines of 14% and 23%, respectively.

The Binance Effect in the Past

This is not the first time a delisting on the platform has triggered a substantial price crash for an affected cryptocurrency.

Earlier this year, Binance terminated all services with Monero (XMR), Aragon (ANT), Multichain (MULTI), and Vai (VAI). The price of the popular privacy coin plunged by 35% after the disclosure. 

The same thing happened when the company withdrew its support to BarnBridge (BOND), Dock (DOCK), Polkastarter (POLS), and Mdex (MDX). The involved cryptocurrencies crashed by double digits, with DOCK plummeting by around 50% on a 24-hour scale.