On November 26, Binance, the largest cryptocurrency exchange worldwide, revealed that it plans to list five tokens: Gift (GFT), Iris Net (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN) by December. Following this, they will be delisted, prompting a major market reaction with the value of these tokens dropping by approximately 40%.
This news triggered a sell-off, resulting in the prices of the specified tokens tanking to mere cents on November 26th, amidst a backdrop of declining trading volumes in recent months. Data from coin market cap indicates a notable decrease:
For REN, trading volume decreased from $34 million in March to just $6 million by November.
OAX saw a similar trend, dropping from $101 million in October down to $468,000 in March.
The community response has been increasingly negative, with some investors expressing their frustrations over a lack of transparency from project developers. On the Telegram channel, one investor from Gifto criticized the project’s management for their insufficient updates.
“One of the developers we follow hasn’t communicated anything regarding the issues on social media, and he even lost money and decided to leave,” the investor lamented.
While Binance hasn’t specified the compliance issues that triggered the delistings, they mentioned that they routinely assess tokens based on various criteria, such as:
Is Team Commitment and Development Quality Important?
Trading volume and liquidity.
The ability to withstand attacks and avoid vulnerabilities.
Responses to Binance’s due diligence requests.
Low trading volume has become a consistent warning sign in the market.
The Weight and Impact of Binance
Binance is a key player in the cryptocurrency sphere, hosting a staggering 386 tokens and 1,975 trading pairs, which comprise over two-thirds of the market. The platform’s trading volume reaches $44 billion within a 24-hour period, making their decisions significantly influential within the sector.
In the sector of blockchain gifts, many companies are eliminating tokens from both established and emerging blockchain applications (like gift), decentralized exchanges (such as OAX), and new DeFi services (like REN). This raises concerns about the sustainability of smaller projects on the market.
For investors connected to these tokens, options are limited. Binance has cautioned that after the deadline on December 13th, tokens that do not meet necessary conditions, based on the token holder’s identity, will be irretrievable.
