TL;DR
- Delisting on Binance: Binance, a leading cryptocurrency exchange, has planned to remove a certain number of spot trading pairs involving a specific fiat currency.
- Variable Price Impact: The delisting of trading pairs from major exchanges can have varied effects on the prices of the involved cryptocurrencies.
- Listings vs. Delistings: Listings can significantly enhance a cryptocurrency’s visibility and demand, while delistings might negatively affect its market performance.
Binance’s Latest Delisting Efforts
The world’s leading cryptocurrency exchange – Binance – revealed it will remove 11 spot trading pairs on December 29.
The pairs included in the dismissal spree are all focused on the British pound, with XRP/GBP, SOL/GBP, ADA/GBP, BTC/GBP, and ETH/GPT being some examples.
Binance did not give an exact reason behind its move, reminding that it conducts periodic reviews of all listed spot trading pairs and scrapping some of those to “protect users and maintain a high-quality trading market.”
In addition, the company assured that delisting the aforementioned pairs will not affect the availability of the tokens on Binance Spot.
“Users can still trade the spot trading pair’s base and quote assets on other trading pair(s) that are available on Binance,” it added.
Such a delisting spree coming from the largest cryptocurrency exchange might be expected to negatively affect the prices of the digital assets participating in the trading pairs. However, this was not the case with some, such as Solana (SOL), which has launched a real bull run lately.
Earlier today (December 22), the token touched the $100 mark for the first time since April 2022, briefly surpassing Binance Coin (BNB) as the fourth largest cryptocurrency.
The Impact of Previous Listings or Delistings
Removing trading pairs from leading cryptocurrency exchanges such as Binance could impact them because of numerous reasons. It reduces the liquidity of a particular digital currency, which, for its part, could trigger enhanced volatility. Delisting a pair might also be seen as a sign of decreasing demand from investors or cause reputational damage to affected crypto assets.
On the other hand, listing on Binance, Coinbase, or other leading marketplaces greatly increases a token’s visibility and accessibility, possibly attracting more buyers.
Recall that Bonk Inu (BONK) – a Solana-based memecoin that has taken the main stage lately – exploded to an all-time high (ATH) shortly after Binance added it on its platform.
The price swings of Tornado Cash (TORN) and Waltonchain (WTC) can serve as the opposite example. Both coins have plunged substantially after the exchange announced the removal of the TORN/USDT and WTC/USDT trading pairs from its platform.
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