Binance, the largest cryptocurrency exchange in the world, recently announced the delisting of six altcoins from its platform. This decision was made as part of their regular review process to ensure that all listed assets meet high standards and industry requirements. Factors considered include team commitment, trading volume, development activity, network stability, and more.
The altcoins affected by this delisting are PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX). Trading pairs involving these altcoins will be removed, and all trade orders will be automatically canceled. The delisting is set to take effect on August 26th.
Delisting from a major exchange like Binance can have negative effects on the prices of altcoins. Reduced liquidity, reputational damage, and panic among traders can all contribute to significant price drops. Following the announcement of the delisting, all six altcoins saw a decrease in value. CVP, FOR, EPX, and VGX experienced drops of around 40%, while LOOM and REEF saw more modest declines of 14% and 23% respectively.
This is not the first time Binance delisting has led to a substantial price crash for affected cryptocurrencies. In previous instances, coins like Monero (XMR), Aragon (ANT), BarnBridge (BOND), and Dock (DOCK) all experienced significant price drops following delisting announcements. Monero, for example, saw a 35% decline in price after being delisted.
The delisting of altcoins from major exchanges like Binance can have a severe impact on their prices. Traders should be aware of the risks associated with investing in assets that may be subject to delisting and take appropriate precautions to mitigate any potential losses.
