Breaking News: Binance Shakes the Crypto Market With the Announcement “Binance Announces Delisting Altcoins”
Binance, arguably the top crypto exchange platform in the world, is making waves with its latest delisting announcement. If you’re active in crypto trading, this surprising news could leave you feeling bewildered and full of questions.
What are those altcoins? What happens to my investments now?
Don’t worry, we got you! In this blog, we will look at what those 8 altcoins are, why Binance made that decision, its impact on the market, and how to navigate this situation.
Which Coins Will Be Delisted On Binance?
- In a recent update, Binance has announced that it will be dropping four altcoins:
- the Rupiah Token (IDRT), the Ooki Protocol (OOKI), the Unifi Protocol DAO (UNFI), and Keep3rV1 (KP3R).
- On November 6, 2024, at 06:00 (UTC), all trading pairs for these tokens will be removed from Binance.
- Binance has also chosen to delist the following trading pairs on the same day with these altcoins:
- UNFI/BTC, UNFI/TRY, UNFI/USDT, USDT/IDRT, KP3R/USDT, OOKI/USDT.
- Also, Binance has decided that the following trading pairs will no longer be available starting on October 25, 2024:
- ALGO/FDUSD, CHR/ETH, DGB/BTC, GMX/BTC
Reasons for Binance’s Decision to Delist the Altcoins
For an altcoin to remain listed on Binance, it has to meet several criteria in its regular assessment. If somehow the altcoin fails to meet those criteria, not only in Binance but even in other crypto exchanges, they will delist the altcoins.
- Low Trading Volume
- Coins that fail to generate an adequate amount of liquidity will get delisted, as it suggests decreases in investor interest.
- Regulatory Concerns
- Another reason a coin might get delisted is because of the growing regulatory oversight, particularly if they have raised some red flags with the government.
- Lack of Development
- An altcoin will definitely be delisted from the exchange if its project shows little to no progress over time due to concerns about its long-term viability.
- Technical and Security Issues
- Altcoins on Binance will be removed if they have security vulnerabilities or don’t meet technical requirements to safeguard users from potential risks like unfavorable performance and hacking.
- Project Team Performance
- The altcoin can also be delisted from Binance if the project team fails to meet its objectives, displays unethical behavior, or might have a poor image with the crypto community.
How Does Binance’s Delisting Impact The Crypto Market
- Bearish Sentiment
- When Bitcoin delists an altcoin, it is typically viewed as a negative event, which can significantly undermine investor confidence.
- Investor Panic
- Binance’s delisting announcement may cause widespread panic among investors, facilitating a massive sell-off and further reducing the price drop.
- Reduction in Market Cap
- Binance’s delisting announcement can significantly impact the altcoin’s value, limiting its market capitalization and affecting the overall crypto market.
- Filtering of Weak Projects
- The delisting announcement might not be all bad. After a challenging short period, this can help weed out the weaker projects, ultimately benefiting the stronger coins.
- Broader Delisting Trends
- Following Binance, other exchanges may be inspired to reexamine their listings, resulting in additional delistings and increased market volatility.
- Shift Towards Quality
- Delisting may encourage traders to prioritize reliable projects, avoid trends, and conduct thorough research to verify their credibility, thereby enhancing the market environment.
What Should Investors Do Next About Delisting?
If you hold the altcoins that are about to be delisted from Binance, I recommend that you do the following:
- Check the altcoin’s potential
- Investigate the altcoin’s basic concept and potential for future growth. Check if the project team is still active, if there are any alliances, and if the project is moving towards its goals.
- Even if an altcoin with a solid foundation is no longer listed on Binance, it can still have long-term value.
- Look for an alternate exchange
- While some altcoins can be delisted from Binance, they might still be accessible and valuable on other exchanges.
- So, if you think these altcoins have future potential, look for an exchange that can support them.
- Monitor liquidity
- If you want to keep your altcoins, you should be aware that there are risks involved.
- Once those altcoins are delisted, their liquidity can collapse, making it difficult to sell in the future.
- Keep track of other exchange listings and total trading volume on those platforms.
- Sell the assets
- If you are concerned about the price drop, just sell your altcoins before the delisting deadline.
- This means you have to sell your holdings little by little instead of selling them all together at once to cushion losses in the face of price volatility.
- Keep up with the updates
- Don’t lose hope. Sometimes the delisted altcoins might make a dramatic comeback. So, keep yourself informed with the latest updates from the development team.
- If the project gains momentum and gets listed on other major exchanges, then your altcoin prices can rise again.
Conclusion
Bitcoin’s delisting announcement of the 8 altcoins should act as a wake-up call to everyone. It stresses the importance of staying up-to-date and doing your research rather than just following market trends. It is common for the market to experience price fluctuations after delisting, but it always rebalances itself. This demonstrates the significant influence a cryptocurrency exchange can have on market dynamics. So, with all of this in mind, if you’re eager to launch your own exchange platform, consider using a Binance Clone script to make your journey smoother.
And while Binance’s delisting may appear difficult at first, in the long run, it can pave the way for a robust market environment.
The most critical move for you, an investor, right now is to calm down, avoid making rash decisions, and carefully assess the portfolio.
Stay informed and keep trading!
