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In a significant move affecting the cryptocurrency market, Binance, one of the leading cryptocurrency exchanges, has announced Monero‘s Delisting along with three other notable tokens. This decision has sparked intense volatility in the price of Monero, causing it to plummet by 34% to $123.
Highlights:
- Leading cryptocurrency exchange, Binance, delisted Monero (XMR) along with three other tokens due to failure to meet their standards. This includes factors like project team dedication, development activity, and token stability.
- The delisting news caused a major price drop for Monero, plummeting 34% from $166.51 to $123.90.
- Binance users holding delisted tokens face specific deadlines for deposits and withdrawals. Unwithdrawn tokens might be converted to stablecoins after May 21, 2024.
Monero’s Delisting Announcement
Binance communicated its decision to halt all trading pairs involving Monero through a recent statement on its official blog. Alongside XMR, the exchange also announced the delisting of Multichain (MULTI), Aragon (ANT), and Vai (VAI). These tokens will cease to be tradable on the Binance spot platform starting February 20.
Reason Behind Monero’s Delisting
The notification from Binance emphasized the exchange’s regular review process for all digital assets listed on its platform. This comprehensive reassessment aims to identify tokens that do not meet the expected standards set by Binance. Factors considered in this evaluation include the project team’s dedication, development activity, trading volume, liquidity, stability, security, smart contract reliability, and public communication.
Failure to Meet Expected Standards
Despite being a privacy-based token with a significant market capitalization of $2.3 billion, Monero, along with the other delisted tokens, fell short of Binance’s expected standards. As a result, all XMR trading pairs, including those with BNB, Bitcoin, Ethereum, and Tether (USDT), will be removed from the exchange. Binance has emphasized that this action is in the best interest of its users.
Implications for Users
Users are advised to take note of important dates following the delisting announcement. Deposit attempts for the delisted tokens made after February 21 will not be honored by Binance. Additionally, withdrawals of these tokens from the exchange will not be possible after May 20, 2024. Binance has also stated that unwithdrawn delisted tokens may be automatically converted into stablecoins after May 21.
Market Reaction
Following Binance’s announcement, the price of Monero (XMR) experienced a significant decline of 34%, dropping from a height of $166.51 to a low of $123.90. CoinMarketCap data indicates that the asset witnessed a more pronounced decline in the hours following the news surfacing, reflecting the market’s reaction to Binance’s decision.
Conclusion
The delisting of Monero by Binance, alongside three other tokens, marks a notable development in the cryptocurrency space. Binance’s decision underscores the importance of maintaining stringent standards to ensure the integrity and security of the platform. As users navigate the implications of this decision, the cryptocurrency market continues to adapt to evolving regulatory and compliance requirements.
