Binance Delists Four Altcoins
On Friday, February 15, 2019, Binance announced that they would be delisting a total of five altcoins which are CLOAK, MOD, SALT, SUB and WINGS. The delisting of Coins by an exchange isn’t entirely uncommon but Binance gave a bit of an explanation for this decision on their blog.
According to Binance management, reasons for the delisting of a coin range from a lack of commitment to the Binance ecosystem to dodgy behavior on the part of the team behind the coin.
While these reasons might seem somewhat vague, there are some specific recent events and factors that might have contributed to Binance’s decision to delist the Coins in question.
With A Pinch Of Salt
One of the possible reasons given by Binance for coin delisting is dodgy behavior by coin management. The SALT Token is one of such coins that has a history of somewhat questionable behavior.
In February 2018, the coin found itself in a bit of trouble with the SEC. They received subpoenas from the commission for allegedly giving times and soliciting information on the funds raised during its ICO, which totaled $50 million.
As a result of this, the coins value fell sharply from $18 per coin to $1 and the management of SALT then announced that they would be removing the option of paying principal to loans using SALT tokens. This problem was further aggravated by the fact that SALT tokens were given a market retail value higher than the actual market price.
After the announcement of their delisting, their value fell even further from $0.21 to $0.17. This is mostly because the Binance SALT/USDT, SALT/BTC Trading pairs constitutes 70 percent of the trading volume for the coin. Needless to say, the future of the SALT Token is unknown and uncertain.
SUBSTRATUM is yet another coin that has been accused of dodgy behavior since the ending of its ICO.
One of the first scandals was when it was reported that the amount declared and the amounts collected through the ICO were different. A report from Brian LI also suggested that 5 BTC, 702 BCH, 1142 ETH, and 35 LTC were mysteriously missing from the ICO funds, leading to rumors of embezzlement.
The embezzlement rumors were made worse when the report pointed out that the CEO of SUBSTRATUM was able to afford ‘$400,000 home and a bunch of new toys in the first week of October 2017″. Their CEO eventually admitted that some of the funds raised were used for his other ventures.
Since Binance delisted the coin, it’s called has also fallen from $0.044 to $0.026.