In a major announcement on November 26, Binance, one of the world’s leading cryptocurrency exchanges, disclosed plans to delist five tokens following its periodic digital asset review. The announcement sent shockwaves through the crypto market, leading to significant price drops for the affected tokens: Gifto (GFT), IRISnet (IRIS), SelfKey (KEY), OAX, and Ren (REN).
According to Binance, the decision to remove these tokens stemmed from their inability to meet the platform’s stringent listing criteria. Binance conducts regular reviews to ensure that all listed digital assets align with its standards, which include: Development activity and technological advancements, Network stability and security, Alignment with regulatory requirements and Overall contribution to a healthy crypto trading ecosystem.
The exchange emphasized that maintaining user protection and upholding the integrity of its trading environment were key priorities in this decision. The delisting process will unfold in the following stages:
- Trading Suspension
Trading for the impacted tokens will cease entirely on December 10, 2024, at 03:00 UTC. The affected trading pairs include:- GFT/USDT
- IRIS/USDT
- KEY/USDT
- OAX/BTC and OAX/USDT
- REN/BTC and REN/USDT
- Deposit and Withdrawal Restrictions
Deposits for these tokens will no longer be credited to user accounts after December 12, 2024. Withdrawal support will continue until February 12, 2025, after which users will be unable to withdraw the tokens. - Binance Futures Adjustments
Binance Futures has also announced that all positions on the KEYUSDT and RENUSDT USDⓈ-M Perpetual Contracts will be automatically settled and closed on December 3, 2024. Users will no longer be able to open new positions on these contracts after this date. - Potential Stablecoin Conversion
Binance mentioned a possibility of converting the delisted tokens into stablecoins on behalf of users after February 13, 2025. However, the exchange clarified that this is not guaranteed, and users are advised to take appropriate actions before the deadlines.
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The announcement triggered immediate market reactions, with all five tokens experiencing sharp declines in value. Data from CoinGecko revealed the following price movements shortly after the news broke:
- Gifto (GFT): Dropped by 30.6% to $0.01242.
- SelfKey (KEY): Fell 29.7% to $0.00262.
- OAX: Witnessed the steepest fall, plummeting by 37.2%.
- Ren (REN): Declined 36.1% to $0.03716.
- IRISnet (IRIS): Slid by 34.8%.
The abrupt decline highlights the significant influence Binance wields in the cryptocurrency market. Tokens facing delisting often suffer substantial losses as traders rush to liquidate their positions, leading to heightened volatility.
In its statement, Binance reiterated that the delisting process is a necessary measure to protect users and maintain a high-quality trading environment. The exchange underscored that factors such as declining development activity, network instability, and regulatory concerns played a crucial role in its decision-making.
By taking proactive steps to delist underperforming or non-compliant tokens, Binance aims to preserve the trust and confidence of its global user base while adapting to the ever-evolving crypto landscape.
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Binance has urged users to act promptly to avoid potential losses or complications:
- Withdraw Tokens: Ensure that all impacted tokens are withdrawn before February 12, 2025.
- Close Futures Positions: Traders holding positions in the KEYUSDT and RENUSDT contracts should close them before December 3, 2024.
- Stay Informed: Keep an eye on official Binance announcements for updates regarding potential token conversions or other relevant details.
Binance’s delisting announcement serves as a stark reminder of the volatile nature of the cryptocurrency market. For projects, it underscores the importance of adhering to high standards of innovation, security, and compliance. For investors, it highlights the need for vigilance and proactive portfolio management.
As the crypto industry continues to mature, exchanges like Binance play a pivotal role in shaping its trajectory. While delistings may cause short-term disruptions, they also reflect efforts to foster a healthier, more sustainable trading environment for all participants.
For those impacted by this development, timely action is essential. Stay informed and make the necessary adjustments to navigate this transitional period effectively.