The world’s largest cryptocurrency exchange, Binance, said on November 26 that it would list Gifto (GFT), IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN) by December and delist them. That caused a big market reaction since the tokens plunged around 40 percent.
Once the announcement led to a sale, it caused prices for the tokens that were affected to plummet to cents on Nov. 26. Trading volumes for the tokens had already been on a decline in recent months, with data from CoinMarketCap showing significant drops:
REN: The range was from $34 million to 6 million dollars, from March to November.
OAX: That’s $468,000 from March to just $101 million in October.
In other words, a lot of the community is starting to get assholes. In a Telegram channel, one Gifto investor criticized the project developers for failing to communicate updates:
“On one project, the developers didn’t even post anything about this issue on social media. I lost more dollars and quit.”
While Binance did not specify the exact compliance issues, it noted that it regularly evaluates tokens based on several criteria, including:
Is it about development quality and team commitment?
- Trading volume and liquidity.
- The ability to resist and resist the attack.
- Response to Binance’s due diligence request.
- It seems to be a frequent red flag of low trading volumes.
Binance’s Dominance & Impact
Crypto’s major player is Binance, which has 386 tokens and 1,975 trading pairs on its list and more than two-thirds of the market. Its $44 billion in trading volume (20 percent in 24 hours) means its decisions are important for the industry.
Many have delisted tokens from proven and emerging blockchain project applications in blockchain gift giving (Gifto), decentralized exchange (OAX), novel DeFi services (REN), and beyond. Isn’t this a situation where small projects can not stay relevant in the market?
As with the people affected, investors have few options. For token listing deadlines after Dec. 13, if you cannot take necessary actions based on token holders’ identity, the tokens cannot be recovered, Binance warned.
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