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Binance Delists WAVES, OMG, XEM, and WNXM – What to Do With Delisted Crypto?

Last Updated June 3, 2024 10:43 AM
Giuseppe Ciccomascolo
Last Updated June 3, 2024 10:43 AM

Key Takeaways

  • Binance will delist OMG, WAVES, WNXM, and XEM on June 17.
  • Exchanges delist assets that don’t meet their standards, such as low development activity, poor communication, or lack of network stability.
  • Following the Binance announcement, the delisted coins experienced a sharp decline.

Binance, the world’s largest cryptocurrency exchange, has announced  plans to delist four tokens from its platform later this month. This decision means that traders can no longer buy, sell, or hold these coins on Binance.

Exchanges delist cryptocurrencies for various reasons, and this process directly affects the holdings of cryptocurrency traders. Here’s what users can do with their cryptocurrencies once an exchange delists them.

Binance Removes Four Cryptocurrencies

Binance has announced  the delisting of several tokens. Effective June 17, 2024, OMG, WAVES, WNXM, and XEM will no longer be available for trading on its platform.

The specific trading pairs being removed are OMG/USDT, WAVES/BTC, WAVES/ETH, WAVES/TRY, WAVES/USDT, WNXM/USDT, and XEM/USDT.

All trade orders in these pairs will be automatically removed after trading ceases on June 17, 2024. Additionally, deposits of these tokens will not be credited after June 18, and withdrawals will no longer be supported after September 17, 2024.

Following the announcement, OMG Network’s OMG fell by 26% to $0.5187, Waves’s WAVES dipped by 27% to $1.71, and NEM’s XEM collapsed by 30% to $0.02508. Only Wrapped NXM had a minor reaction to the news, decreasing by 1.5% to $81.20.

This decision comes amid increasing regulatory scrutiny and evolving market dynamics within the cryptocurrency industry. By delisting tokens that do not meet Binance’s stringent standards, the exchange aims to adapt to these changes and maintain the quality of its listings.

Why Delisting Happens

Delisting  refers to the removal of an asset from an exchange, which can occur either at the request of the project’s team or due to the asset or its team failing to meet the exchange’s listing requirements. Several factors can contribute to the decision to delist an asset, including overall team commitment to the project, quality and level of development activity, project network and smart contract stability.

Furthermore, the level of public communication from the project team and the responsiveness to due diligence requests from an exchange are factors that may contribute to the delisting of cryptocurrencies. Evidence of unethical or fraudulent behavior, contribution to a healthy, sustainable blockchain and cryptocurrency ecosystem, and other reasons deemed unacceptable or risky by the exchange are also parts of the exchanges’ consideration.

When an asset is delisted, the exchange removes all its trading pairs. While the asset can still be traded on other exchanges – including decentralized ones – or through over-the-counter (OTC) trading, trading activity on the delisting exchange will cease.

After delisting, the exchange typically keeps withdrawals open for a specified period, allowing users to withdraw their existing funds even though trading is no longer available on the platform. This ensures users can access their assets despite the delisting.

What To Do With Delisted Crypto

Understanding the implications  of a cryptocurrency delisting is crucial for making informed decisions about holdings. Users have three primary options: transfer the coins to another exchange, hold them, or sell them.

Transferring the coins to another exchange is feasible if other exchanges support the delisted coin. This process involves creating accounts on both exchanges, verifying coin support, generating a deposit address, initiating a withdrawal, and confirming the transaction. Be aware that this may incur a withdrawal fee.

Holding the coins can be a speculative strategy, hoping for a potential relisting or value increase. However, this approach carries the risk that the coin may never return to an exchange and its value may not recover.

Selling the coins is another option. If the coin is no longer available on regular exchanges, this often involves over-the-counter (OTC) markets or peer-to-peer (P2P) exchanges. However, this can be challenging and might require accepting a discounted price due to reduced liquidity.

When transferring coins, ensure you understand both exchanges’ withdrawal fees and minimum deposit amounts. These factors can vary and impact the overall process.

Given the complexity and risks of handling delisted coins, seeking guidance from a financial advisor or crypto expert can help. Conduct thorough research, evaluate the risks and rewards of each option, and consider all associated fees.

Delisting can significantly impact a coin’s liquidity and price. Therefore, it’s essential to know your options and proceed with caution. Whether you transfer, hold, or sell your coins, informed decision-making is key to effectively managing the consequences of delisting.

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