Binance delists four altcoins including Bytecoin [BCN]
Binance, the largest crypto exchange by trading volume, has announced that it will delist four altcoins from its platform. The team has decided to delist Bytecoin [BCN], ChatCoin [CHAT], Iconomi [ICN] and Triggers [TRIG]. The exchange will allow withdrawals of these cryptocurrencies until November 12.
Binance team does periodic reviews of all cryptocurrencies listed on the exchange for consumer protection. These reviews ensure that all projects maintain a ‘high standard of quality’. “In the event a coin or token falls below this quality standard, it will be subject to further review and potentially delisted,” the announcement stated.
The team bases its decision on a particular set of factors. They look at the coin’s network stability, public communication and activities, fraudulent conduct, quality and level of development activity, the commitment of a team to their respective projects, contribution to the crypto ecosystem and response to periodic reviews conducted by the Binance team.
Following the Binance delisting, the four altcoins experienced a huge dip in their prices. Bytecoin, currently ranked as the 30th largest crypto by market cap, slumped around 20% following Binance’s announcement. ChatCoin dropped 20% while Triggers plummeted by a whopping 39%. Iconomi had slipped 5% at press time.
Binance is not the only exchange delisting coins based on their performance. Recently, Bittrex, a major crypto exchange, delisted Bitcoin Gold [BTG], Bitshares [BTS] and Bitcoin Private [BTCP] over claims of insufficient liquidity. Also, Poloniex, an exchange owned by the Goldman-backed Circle, stopped trading three altcoins – GNO (Gnosis), AMP (Synereo) and EXP (Expanse) – on its platform due to low trading volumes.
Major factors for exchanges delisting coins include insufficient liquidity, network hacks, and lack of trading volumes. Some exchanges also focus on regulatory compliance of the cryptocurrencies to grant investor protection. Earlier this year, Bittrex had delisted 82 coins over concerns of liquidity and broken blockchain or faulty wallet service.
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