The recent announcement by Binance, the largest cryptocurrency exchange in terms of trading volume, regarding the delisting of Monero (XMR) and Multichain (MULTI) sent shockwaves through the market. With the removal of these digital assets, questions arise regarding the reasons behind the decision and the potential consequences for investors and the broader crypto community.
Binance made it clear that the delisting of XMR, MULTI, Aragon (ANT), and Vai (VAI) was due to these assets no longer meeting its listing criteria. The exchange also stated that delisted tokens might be converted into stablecoins on behalf of users, but emphasized that this conversion is not guaranteed. The news of the delisting led to an immediate drop in the values of XMR and MULTI, with both experiencing a decline of around 20%.
While ANT and VAI were only mildly affected by the delisting announcement, market observers speculated on the reasons behind the specific targeting of Monero. Privacy-focused coins like Monero have faced regulatory scrutiny due to concerns about their potential involvement in illicit activities. Several major exchanges, including OKX, have previously delisted privacy coins to comply with regulatory standards. Monero’s position as the largest privacy-oriented blockchain network by market capitalization likely drew attention from regulators and led to its delisting.
The delisting of Monero from Binance will certainly impact its liquidity and accessibility. Binance is a prominent exchange utilized by a vast number of traders and investors. Its decision to remove Monero will limit the avenues through which individuals can buy or sell the cryptocurrency, potentially leading to decreased trading volume and price volatility. Moreover, the delisting sends a signal to other exchanges and regulatory bodies that Monero may no longer meet their listing or compliance criteria.
Multichain, on the other hand, has faced its fair share of challenges and negative publicity. The protocol experienced a significant setback when $126 million worth of funds vanished, followed by the Chinese authorities detaining its CEO. These incidents raised concerns among users regarding the reliability and security of the protocol. The delisting from Binance further tarnishes Multichain’s reputation, as its removal from a major exchange suggests a lack of confidence in the project.
The delisting of Monero and Multichain by Binance has undoubtedly shaken the cryptocurrency market. It highlights the growing regulatory pressures faced by privacy-focused coins and the repercussions of past security breaches and controversies. The impact on XMR and MULTI’s value demonstrates the influence of major exchanges on the market. As the crypto industry continues to evolve, such delistings serve as a reminder of the need for compliance and transparency to maintain trust and foster long-term growth.