Altcoins
These Altcoins Plunge by Double Digits After Binance Delistings: Details
TL;DR
- Binance will stop trading services for certain cryptocurrencies. The announcement was followed by significant price cuts for the affected assets.
- It recently introduced new trading pairs like BTC/MXN and removed some old ones, continuing to adjust its offerings to improve user experience and respond to the latest market trends.
The cryptocurrencies concerned
Binance will end trade on all spot and margin pairs for the following tokens: OmiseGO (OMG), Waves (WAVES), Wrapped NXM (WNXM), and NEM (XEM). Withdrawals of these assets from the platform will no longer be supported after September 17, while delisted coins can be converted to stablecoins on behalf of users after September 18.
“Binance Simple Earn will delete the tokens mentioned above after 06/13/2024 at 03:00 (UTC). Users can choose to pre-use their positions on flexible and locked products. Otherwise, these flexible and locked product positions will be automatically exchanged at the time mentioned above and then transferred to users’ Spot wallets, with all accumulated rewards, starting from 06/13/2024 at 03:00 ( UTC).
Binance Auto-Invest will stop trading services with the tokens after June 7, while Binance Loans and VIP Loan will close the offering four days later.
The company did not provide an exact reason behind the decision, recalling that it periodically reviews each listed cryptocurrency to ensure it meets “a high level of standard and industry requirements.” Some of the important factors considered by Binance include team commitment, level and quality of development activity, trading volume, liquidity, etc.
Some of the affected digital assets, such as OMG and WAVES, saw double-digit price drops following the announcement. XEM was hit the hardest, dropping more than 30% on a 24-hour scale. Currently, it is trading at a seven-month low of around $0.025 (according to CoinGecko data).
Delisting cryptocurrencies from a major trading platform like Binance can have a significant impact on their price performance. The process can result in a negative perception of the credibility and future potential of the tokens, reputational damage, and other setbacks.
A similar price drop of an affected token occurred in February this year, when the exchange stopped trading services with Monero (XMR) and three other altcoins. The popular privacy coin saw its valuation drop by more than 20% shortly after the announcement.
Other Recent Binance Updates
The company has implemented several changes to its platform over the past few days, including the introduction of new trading pairs.
Last week was added BTC/MXN, XRP/MXN, ENS/USDC and LDO/USDC on Binance Spot. Two of the pairs touch the Mexican peso (MXN), the national currency of the Latin American country. Earlier this year, the exchange spear a direct pair between USDT and MXN.
On the other hand, Binance removed some previously listed pairs, such as CAKE/TUSD, DYDX/BNB, and LAZIO/BTC.