Important notice from Binance about these 6 Altcoins

TL;DR

Binance will delist six altcoins, which will lead to significant drops in the price of these assets. Historically, these efforts have led to sharp price declines for a variety of reasons, including reduced liquidity and market panic.

The latest update

The world’s largest cryptocurrency exchange regularly reviews every digital asset listed on its platform to ensure it “continues to meet a high level of standard and industry requirements.”

“When a coin or token no longer meets these standards or the industry landscape changes, we conduct a more detailed review and potentially withdraw it. Our priority is to ensure the best services and protections for our users as we continue to adapt- us to evolving market dynamics,” he explained.

The company takes into account several factors, including the team’s commitment to the project, trading volume and liquidity, the level and quality of development activity, the stability of networks against attacks and much more.

After the latest reviews, it decided to suspend all operations with six altcoins. Namely, these are PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF) and VGX Token (VGX). The delisting will take effect on August 26.

“The exact trading pairs being removed are: CVP/USDT, EPX/USDT, FOR/BTC, FOR/USDT, LOOM/BTC, LOOM/TRY, LOOM/USDT, REEF/TRY, REEF/USDT, VGX/USDT . All trade orders will be automatically deleted after trading ceases in each respective trading pair,” Binance explained.

Delisting cryptocurrencies from such a major exchange can negatively affect their prices due to reduced liquidity, reputational damage and subsequent panic among traders.

As such, it’s no surprise that all the coins involved headed south shortly after the announcement. CVP, FOR, EPX and VGX are down about 40% on a daily basis. LOOM and REEF have also fallen, albeit more modestly, registering declines of 14% and 23%, respectively.

The Binance effect in the past

This is not the first time that a delisting on the platform has caused a substantial drop in the price of an affected cryptocurrency.

Earlier this year, Binance canceled all services with Monero (XMR), Aragon (ANT), Multichain (MULTI), and Vai (VAI). The price of the popular privacy coin fell 35% after the disclosure.

The same thing happened when the company withdrew its support for BarnBridge (BOND), Dock (DOCK), Polkastarter (POLS), and Mdex (MDX). The cryptocurrencies involved crashed by double digits, with DOCK plummeting by around 50% on a 24-hour scale.

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