They Come And They Go As Binance Exchange Delists Several Dying Altcoins And Blockchain Assets
Binance announced that it will be delisting several platforms from its exchange, including MOD, CLOAK, WINGS, and SUB. A few of the reasons for the de-listings, as the platform puts it, are “commitment of the team to project” and “fraudulent conduct.”
This is not the first mass removal of platforms from the exchange – in October, it removed several others such as TRIG, CHAT, BCN, and ICN.
The delisting should not come as a surprise for platforms who have engaged in Binance’s review process. The platform lists several criteria for platforms who want to be listed, including:
- Level of public communication
- Level and quality of development activity
- Commitment of the team project
- Responsiveness to Binance’s periodic due diligence requests
- Evidence of unethical of fraudulent conduct
- Contribution to a healthy and sustainable eco system
Binance did not comment as to which criteria the delisted platforms failed to meet. But it can be possible to guess. For instance, SALT Lending recently received a subpoena from the United States Securities Exchange Commission due to questionable legality of the platform’s $50 million token sale.
As for Substratum, which is working to build a “decentralized web” had its SUB token removed from Exodus, possibly due to errors concerning the token’s “smart contract migration.” Additionally, the platform has not met key milestone for its SubstratumNode software, even though it stated that it would be prepared on time.
Delisting by Binance is serious. The platforms that have been delisted may just lose out on their primary source of trading volume. Further, the impact is already been seen in the tokens’ value, which have significantly decreased against BTC. The official end date for trading of these tokens on Binance is February 22, 2019.
Further, token delisting for non-compliance is not new. For example Huobi delisted 32 tokens into a Special Treatment category due to “insufficient trading volume” and “investment risks to users.”