Binance’s Delisting Decision Sends 6 Altcoins Into Freefall

2 months ago 39

Binance, one of the world’s largest crypto exchanges, has announced the delisting of six altcoins. The impacted altcoins—PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX)—experienced sharp declines in value, each dropping by double digits immediately after the announcement.

Historically, the announcement about Binance listing/delisting altcoins has had a significant impact on their prices.

Users Must Take Action Before Binance Delists Altcoins

Effective August 26, 2024, at 03:00 UTC, Binance will remove all spot trading pairs for these tokens.

The pairs affected include CVP/USDT, EPX/USDT, FOR/BTC, FOR/USDT, LOOM/BTC, LOOM/TRY, LOOM/USDT, REEF/TRY, REEF/USDT, and VGX/USDT. Subsequently, the exchange will automatically cancel all existing trade orders.

Binance conducts periodic reviews to evaluate factors such as team commitment, development activity quality, trading volume, liquidity, network safety, stability, public communication, responsiveness to due diligence requests, and compliance with new regulatory requirements.

“When a coin or token no longer meets these standards or the industry landscape changes, we conduct a more in-depth review and potentially delist it,” Binance explained.

The price effects were both immediate and substantial. CVP plummeted nearly 14%, EPX dropped by 22%, FOR by nearly 20%, LOOM by almost 13%, REEF by over 20%, and VGX by around 18%. These sharp falls reflect the market’s sensitivity to exchange delistings, which often act as a proxy for a token’s perceived viability.

After August 27, 2024, Binance will not credit the deposits of these tokens. However, the exchange will support withdrawals of these tokens until November 26, 2024.

Later, Binance may convert these tokens into stablecoins. Although, this is not guaranteed. A separate notification will precede any such conversion.

CVP, EPX, FOR, LOOM, REEF, and VGX Price Performance

In a separate development, Binance has informed users about an upcoming automatic conversion of 15 previously delisted altcoins into the USDC stablecoin. This process will be based on user holdings as recorded at the snapshot time of September 2, 2024, 00:00 UTC. The aim is to provide users with a stable value store after these tokens are removed from active trading.

These altcoins are: