OKEx, the second largest crypto exchange by volume, has announced the delisting of more than 30 trading pairs including Ripio/ETH and Monetha/BTC. The exchange cited weak trading volume as the justification for the ejections.
The delistings will not take effect until the 31st. Listing and delisting is a common practice among cryptocurrency exchanges, and, depending on the size of the exchange, can be the death-blow to a coin’s price. Some have voting mechanisms in place where clients can even essentially pay to have a token listed, generally in hopes of recouping their investment through trading.
Being listed or delisted at one exchange is not earth-shattering for most tokens with reasonably sized markets. In the case of Ripio, which is the token of a peer-to-peer lending network, 24-hour volume saw a massive spike in terms of the US dollar value, more than doubling from around $8 million the day before. Just 31 BTC (~$200,000) of this trading was done at OKEx.
From these facts, it’s plain to see that RCN was just simply not a very popular token on OKEx. By contrast, more than $5 million of this volume was conducted at Binance, according to Coinmarketcap.
Conversely, in the case of Monetha, trading seems to be generally down, which can probably be attributed to trading being down across the market. Less than $500 in MTH was traded at OKEx over the past 24 hours out of a total of more than $1 million in trading. Most of the volume seems to have taken place at Binance. This is down from a token high of more than $21 million back in mid-January.
Removing markets with low liquidity and trading volume is an important function of centralized exchanges. The alternative is a situation like is seen EtherDelta, where every token on the network can be traded, but few if any seem to consolidate trading on that platform. Trading is as much a social as it is an economic activity, and popularity of exchanges is based on several factors. OKEx is one of the oldest exchanges in cryptocurrency, but relative newcomer Binance has been dominating the scene for some time now, backed by its own token, BNB.
Another notable token that was delisted was Everex, a half-dollar (currently) token which seems to be vulnerable to the bear market in terms of trading as well, having done a total of only a half million dollars in trading over the past 24 hours.
The full list of token pairs being delisted is as follows:
Featured Image from Shutterstock. Charts from CoinMarketCap
Last modified: May 20, 2020 2:33 PM UTC