Binance is delisting five tokens GFT, IRIS, KEY, OAX, and REN by December due to non-compliance.
Binance, a cryptocurrency exchange, is planning to remove five cryptocurrency tokens from its index by the end of December, claiming a lack of compliance with industry standards.
As stated in a notice on November 26, Binance plans to delist trading pairs for Gifto (GFT), IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN) between the dates of November 26 and December 10.
The closing of arbitrage techniques, loans, and futures bets on these tokens will take place on December 3, while the suspension of isolated and cross-margin borrowings will take place on November 27.
The statement triggered a massive sell-off, causing the tokens to collapse by about forty percent, with values hitting a low of just one cent at the time of this writing.Based on the amount of trading activity, CoinGecko identifies Binance as the most prominent cryptocurrency exchange.
It presently has 386 tokens and 1,275 trading pairs listed on its platform, and the trading volume at the exchange was $44 billion on November 26. This is an increase of approximately 20% over the previous 24 hours.
The exchange did not disclose the specific requirements that the tokens do not fulfill, however, it did list the key factors that it regularly evaluates. These factors include the team’s commitment to projects, the quality of development, trading volume and liquidity, stability and safety from attacks, and responsiveness to periodic due diligence requests, among other things.
Projects that aim to implement a variety of blockchain-based solutions, such as blockchain-based gift-giving, decentralized exchanges, and interoperability services for decentralized finance (DeFi), have delisted their currencies.
During the course of the last few months, the majority of these tokens had experienced decreasing trade volumes. The trading volume of OAX declined from a peak of $101 million in March to $468,000 in October, while the trading volume of REN actively decreased from $34 million in March to almost $6 million in early November, according to data from CoinMarketCap.
Because it signals weak liquidity and a lack of acceptance, a low trading volume is frequently a warning sign for both the projects and the investors of the cryptocurrency.
In a Telegram channel, a few members of the Gifto community voiced their disapproval at the developers’ failure to provide social media updates regarding the project.
One participant expressed their disappointment, saying, “I lost more money in this project and gave up because the developers didn’t even post anything regarding this issue on their social media.
Binance informed customers that we will not credit deposits of these tokens after December 11th, and we will not support withdrawals after December 12th. The exchange stated that users may convert the tokens into stablecoins after December 13th. Nevertheless, there is no assurance of this.Â
