Significant Reduction in Price for These Cryptocurrencies Following Binance's Decision to Cease Withdrawal Services
In a move aimed at maintaining marketplace quality, regulatory compliance, and user protection, global cryptocurrency exchange Binance has announced the delisting of several crypto assets. The delisting, scheduled for July 4, 2025, will affect five altcoins and four spot trading pairs with low liquidity and volume.
The five altcoins set for delisting include ALPHA (Stella), BSW (Biswap), KMD (Komodo), LEVER (LeverFi), and LTO Network (LTO). These will be removed from Binance’s spot trading from July 4, starting at 06:00 AM UTC. The delisting process will be phased across different Binance services, including Buy & Sell Crypto, Binance Pay, Binance Convert, and Gift Cards, between June 27 and July 4.
Four spot trading pairs with low liquidity and volume, ACT/EUR, FIO/BTC, TNSR/FDUSD, and TST/FDUSD, will also be delisted on July 4, 2025, at 03:00 UTC. It's important to note that the delisting of these pairs doesn't mean the tokens themselves are removed from Binance’s spot trading entirely, as they may still be traded in other pairs.
The reasons behind Binance's decision to delist these assets include low trading volume and liquidity, development activity and transparency, and regulatory scrutiny. Binance routinely evaluates tokens and trading pairs for market health, removing those with insufficient activity, and projects must continually demonstrate active development and maintain clear communication to stay listed. Binance increasingly considers regulatory compliance, removing assets that may pose legal risks or fail to meet compliance standards.
The impact of this delisting on traders and holders is significant. Users must close positions or transfer assets off Binance before the delisting dates to avoid forced liquidation or loss of liquidity. Open orders for the delisted tokens are cancelled, with remaining balances transferred back to users' spot wallets.
Market price volatility is another implication, with affected tokens often experiencing sharp sell-offs and price drops due to the loss of accessibility and reduced liquidity. For instance, a similar past delisting caused WRX’s price to plunge by over 60%.
Trading contracts related to delisted tokens may continue but could see changes in leverage, maintenance margins, and other terms. The delisting aims to improve user experience by removing low-quality or risky assets, which could set a precedent for other exchanges to adopt similar quality control and regulatory alignment measures.
It's worth noting that Binance's decision to list a cryptocurrency can result in a significant rally, as seen with DeepBook (DEEP) and Tutorial (TUT) in recent times. Withdrawals for these assets will become unavailable from July 4, 2022. Delisted tokens may be converted into stablecoins on behalf of users after July 5, 2022, but this conversion is not guaranteed.
In conclusion, Binance’s delisting of certain altcoins and trading pairs reflects an ongoing trend towards stricter platform governance focused on liquidity, project viability, and regulatory compliance. While this safeguards users and the exchange’s reputation, it also creates short-term market disruptions and challenges for investors holding these assets on Binance. Users are advised to manage their holdings proactively in response to such announcements.
- Traders and holders of ALPHA (Stella), BSW (Biswap), KMD (Komodo), LEVER (LeverFi), LTO Network (LTO), and some specific trading pairs will need to close their positions or transfer their assets off Binance before July 4, 2025, to avoid forced liquidation or loss of liquidity, as these assets are set for delisting on that date.
- Binance's decision to delist cryptocurrencies is often influenced by low trading volume and liquidity, development activity and transparency, regulatory scrutiny, and market health, requiring projects to continually demonstrate active development and maintain clear communication to stay listed.
- Market price volatility is common when a cryptocurrency is delisted, as affected tokens often experience sharp sell-offs and price drops due to the loss of accessibility and reduced liquidity. For instance, a similar past delisting caused WRX’s price to plunge by over 60%.
