Binance, the world’s largest cryptocurrency exchange by trading volume, announced plans to delist five tokens by December, citing non-compliance with industry standards.
In a Nov. 26 announcement, Binance revealed it would delist trading pairs for Gifto (GFT), IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN) by Dec. 10.
Arbitrage strategies, loans, and futures positions for these tokens will be closed on Dec. 3, while isolated and cross-margin borrowing was suspended starting Nov. 27.
This news triggered a sell-off, with token prices plunging nearly 40%, reducing them to mere cents.
Binance, which lists 386 tokens and 1,275 trading pairs, recorded $44 billion in trading volume on Nov. 26, a 20% increase over 24 hours, according to CoinGecko.
The exchange did not specify which requirements the tokens failed to meet but highlighted its regular evaluation factors, including team commitment, development quality, trading volume, liquidity, and responsiveness to due diligence requests.
Impact on Tokens and Projects
The delisted tokens represent projects spanning blockchain gift-giving, decentralized exchanges, and DeFi interoperability solutions.
Many of these tokens have experienced declining trading volumes.
For instance, Ren’s trading activity fell from $34 million in March to $6 million in November, while OAX saw a drop from $101 million in March to $468,000 by October, per CoinMarketCap.
Low trading volumes often signal poor liquidity and limited adoption, raising concerns for both projects and investors.
Community Reaction
In a Telegram channel, some Gifto community members criticized developers for their lack of communication.
“I lost more dollars in this project and gave up because the devs don’t even post anything regarding this issue on their social media,” one user complained.
Binance warned users that token deposits would not be credited after Dec. 11, with withdrawals ceasing after Dec. 12.
Tokens may be converted into stablecoins for users after Dec. 13, but the exchange offered no guarantees.
