Binance delists four altcoins including Bytecoin [BCN]

Binance, the largest crypto exchange by market cap, has announced that they will be delisting four crypto coins from their exchange. The team has decided to delist four coins including Bytecoin (BCN), ChatCoin (CHAT), Iconomi (ICN) and Triggers (TRIG). The exchange will allow withdrawals of these cryptocurrencies until November 12.

Binance team does periodic reviews of all the cryptocurrencies listed on the exchange for consumer protection. These reviews ensure that all projects maintain a 'high standard of quality'. "In the event a coin or token falls below this quality standard, it will be subject to further review and potentially delisted," read the announcement.

The team bases its decision on a certain set of factors. They look at the network stability of the coin, public communication and activities, fraudulent conduct, quality and level of development activity, the commitment of a team to their respective projects, contribution to the crypto ecosystem and response to the periodic reviews conducted by the Binance team.

Prices Nosedive

Following the Binance delisting, the four altcoins have experienced a huge dip in their values. Bytecoin, currently ranked 30th largest cryptocurrency by market cap, has fallen around 20%. ChatCoin is also exhibiting a 20% loss while Triggers lost the most in the market by 39%. Iconomi is falling by 5%.

Binance is not the only exchange delisting coins based on their performance. Recently, Bittrex, a major crypto exchange, delisted Bitcoin Gold [BTG], Bitshares [BTS] and Bitcoin Private [BTCP] over claims of insufficient liquidity. Also, Poloniex, another major exchange owned by the Goldman backed Circle, stopped trading three altcoins, GNO (Gnosis), AMP (Synereo) and EXP (Expanse) on its exchange platform due to low trading volumes.

Major factors for exchanges delisting coins include insufficient liquidity, network hacks, and lack of trading volumes. Some exchanges also focus on regulatory compliance of the cryptocurrencies to grant investor protection. Earlier this year, Bittrex had delisted 82 coins over concerns of liquidity and broken blockchain or a faulty wallet service.

See Also: U.S. SEC reveals progress made on Bitcoin ETF proposal; sets deadline for comments

VNX Exchange partners with NEM to develop security token protocols

Image via Shutterstock

Join our Telegram group