Delisting From Binance Sparks Major Drop in Value for Monero and Multichain

Delisting From Binance Sparks Major Drop in Value for Monero and Multichain

Binance, the leading cryptocurrency exchange by trading volume, recently announced that it would be delisting two digital assets, Monero (XMR) and Multichain (MULTI), along with several other tokens. The delisting decision was made because these assets no longer met Binance’s listing criteria. As a result, XMR and MULTI experienced a significant decline in value.

After the delisting announcement, Monero’s value plummeted by approximately 20%. The price dropped as low as $136, according to data from CryptoSlate. This severe decline can be attributed to the market’s reaction to Binance’s decision. It is worth noting that Monero, as the largest privacy-oriented blockchain network, has faced regulatory scrutiny due to concerns about its potential misuse in illicit activities.

Market observers have speculated that Binance’s choice to delist Monero might be related to the exchange’s efforts to comply with evolving regulatory standards. Privacy-focused cryptocurrencies like Monero have attracted regulatory attention due to the perceived risks associated with their anonymity features. Other major exchanges, such as OKX, have also delisted Monero for similar reasons. As regulators focus on combating money laundering and illicit activities, exchanges may opt to delist privacy-oriented coins to mitigate potential risks.

Multichain, a cross-chain protocol facilitating asset and NFT bridging across multiple blockchains, has been embroiled in controversy. Last year, the protocol faced a major setback when $126 million worth of funds disappeared abruptly. Furthermore, the Chinese authorities detained the CEO of Multichain, and users complained about delayed transactions and locked funds. With these issues, it is not surprising that Binance decided to delist the Multichain token.

While Monero and Multichain experienced a significant drop in value, other tokens affected by Binance’s delisting decision, such as Aragon (ANT) and Vai (VAI), had a more muted response. Their prices fell by less than 1%. This discrepancy in market reaction suggests that investors may have differing levels of confidence in the viability of these assets following their removal from Binance’s platform.

Binance’s move to delist certain digital assets reflects the exchange’s commitment to maintaining strict listing criteria and complying with regulatory standards. As the cryptocurrency industry continues to evolve, exchanges are increasingly pressured to address concerns surrounding market volatility and potential risks associated with specific tokens. By delisting assets that no longer meet their criteria, exchanges aim to protect their users and the overall integrity of the market.

The delisting of Monero and Multichain by Binance had a significant impact on the value of these assets. While Monero faced a substantial decline due to its regulatory scrutiny, Multichain’s troubles and controversies may have contributed to its delisting. As the cryptocurrency landscape continues to develop, exchanges must carefully evaluate which assets are deemed suitable for their platforms, considering both regulatory requirements and market demand.

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