A crypto exchange giant Binance recently announced that it intends to delist four coins from its exchange. The announcement immediately caused a significant price decline for the altcoins.
Binance usually conducts thorough reviews of all the coins listed on their website to ensure they meet the exchange’s quality standards.
The announcement reads: “In the event a coin or token falls below this quality standard, it will be subject to further review and potentially delisted.”
The exchange listed minimum thresholds that they expect all new and existing projects on their platform to meet:
- Commitment of team to project
- Quality and level of development activity
- Network / smart contract stability
- Level of public communication and activity
- Responsiveness to our periodic due diligence
- Evidence of unethical/fraudulent conduct
- Contribution to a healthy and sustainable crypto ecosystem
Any coin that does not meet one of these criteria are usually delisted and subsequently removed from the platform.
Following this, Binance has discovered that four coins on their platform do not meet the specified standards. Coins that are going to be delisted include Bytecoin (BCN), Iconomi (ICN), Triggers (TRIG), and ChatCoin (CHAT). After the announcement, the price of Bytecoin dropped by more than 15 percent.
Binance said it will completely sever ties with all the delisted tokens on the 10th of October 2018, at exactly 10 AM UTC. The exchange has also reiterated that it will continue to review coins on its exchange to ensure all users and stakeholders are protected. In other words, the move is not only meant to eradicate substandard coins from the platform but also to ensure users aren’t exposed to fake digital currencies.
“This is a very painful decision for us all. Might as well get it over with in one shot, instead of delisting one each day,” Binance CEO said on a Twitter comment.
Investors and users that hold these digital assets have been given a two-day ultimatum to withdraw their coins.