The Binance Effect
The world’s largest crypto exchange, Binance, has a significant impact on the market, particularly for altcoins. When it comes to removing tokens from its platform, the effects can be devastating. In this article, we will explore the consequences of Binance’s decision to delist 14 altcoins from its platform.
Delisting of 14 Altcoins
Binance announced that it would be removing 14 altcoins from its platform, including Badger (BADGER), Balancer (BAL), Beta Finance (BETA), Cream (CREAM), Cortex (CTXC), aelf (ELF), Firo (FIRO), Kava Lend (HARD), NULS (NULS), Prosper (PROS), Status (SNT), TROY (TROY), Unilend Finance (UFT), and VIDT DAO (VIDT). The delisting comes after a community voting process, where 24,141 participants took part. Only users who held a minimum balance of 0.01 BNB in their accounts were eligible to cast a vote.
The Token’s Valuation
Binance explained that the tokens’ valuation will no longer be displayed in users’ accounts after delisting. The exchange also stated that deposits of these tokens will not be credited to users’ accounts after April 16, 2025, and withdrawals will not be supported after June 9, 2025.
The Effect on the Market
The removal of these tokens from the platform has had a significant impact on the market. All of the affected tokens have nosedived by double digits, with CREAM and BETA registering steep daily declines of almost 60%. The conversion of the removed assets into stablecoins before June 10 is possible, although Binance said that it “is not guaranteed.”
A Comparison to the Opposite Outcome
Conversely, embracing a new cryptocurrency or adding further services often boosts the price of the asset in question. A similar event occurred at the start of the month when the exchange placed the cat-themed meme coin MEW into its Binance Alpha section. The latter is a platform within the company’s ecosystem that highlights promising crypto projects. It acts as a pre-listing selection stage, potentially leading to official inclusion in the exchange. MEW’s price soared by 15% shortly after the announcement, but the bears stepped in the following days and erased the gains.
Conclusion
The removal of tokens from Binance’s platform can have a significant impact on the market. The delisting of 14 altcoins has resulted in steep declines in their prices, with CREAM and BETA being the worst-affected ones. The conversion of the removed assets into stablecoins before June 10 is possible, although Binance said that it “is not guaranteed.” In contrast, embracing a new cryptocurrency or adding further services often boosts the price of the asset in question.
FAQs
Q: Why did Binance delist 14 altcoins?
A: Binance delisted the 14 altcoins after a community voting process, where 24,141 participants took part. Only users who held a minimum balance of 0.01 BNB in their accounts were eligible to cast a vote.
Q: What will happen to the tokens’ valuation?
A: The tokens’ valuation will no longer be displayed in users’ accounts after delisting.
Q: Can I still deposit or withdraw the removed tokens?
A: Deposits of these tokens will not be credited to users’ accounts after April 16, 2025, and withdrawals will not be supported after June 9, 2025.
Q: Is there a way to convert the removed assets into stablecoins?
A: Yes, the conversion of the removed assets into stablecoins before June 10 is possible, although Binance said that it “is not guaranteed.”
Q: How can I avoid the negative impact of Binance’s delisting?
A: It is essential to diversify your portfolio and not put all your eggs in one basket. Keep an eye on market trends and be prepared to adapt to changes in the market.
Q: Are there any benefits to being listed on Binance?
A: Yes, being listed on Binance can be beneficial for a cryptocurrency. It can increase liquidity, visibility, and credibility for the asset. However, the removal of a token from the platform can have negative consequences.
Q: How can I get my cryptocurrency listed on Binance?
A: To get your cryptocurrency listed on Binance, you need to submit an application to the exchange. Binance has a strict evaluation process, and only tokens that meet its requirements are considered for listing.
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