Binance, the biggest crypto exchange on trading volume metrics, prompted the free fall of three Altcoins on Wednesday.
The exchange revealed its decision on September 3rd early in the Asian session, causing a sudden but almost immediate price crash.
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Binance to eliminate 3 Altcoins: What users need to know
The announcement highlighted Bakery Token (Bake), Hifi Finance (HIFI) and Self-Chain (SLF) as tokens marked delisting.
Starting September 17th at 3:00 UTC, Binance Exchange will suspend trading of three Altcoins. Delisting affects all trading pairs of altcoin.
“The above mentioned spot trading pairs of tokens will be deleted. All trading orders will be automatically deleted after trading is suspended for each trading pair.
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Against this background, Binance advised users to update and/or cancel trading bots prior to service termination in order to avoid potential losses.
Deposits for these tokens will not be credited to your account after September 18th. Similarly, withdrawals will not be supported after November 18th.
In the aftermath of Binance’s registration announcement, prices for Bake and SLF fell double digits, with Hifi losing 7%.
The price impact of Altcoins was no surprise, similar to the token response to past listing announcements.
For example, Binance’s announcement in April saw a plunge in affected tokens due to the delisting of 14 Altcoins. Some, such as beta, hard, and NULS, lost more than 40% in value.
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Meanwhile, Binance usually takes delisting actions after regular reviews. This ensures that the tokens in your product suite meet standard and industry requirements.
“If a coin or token does not meet these standards or make any changes to the industry, we will conduct a more detailed review and potentially discontinue. Our priority is to ensure optimal service and protection for our users while continuing to adapt,” the exchange explained.
Important considerations for such reviews range from team commitment, structural changes in ownership, transaction volume, and liquidity.
Meanwhile, Binance Spot Copy Trading will discontinue three Altcoins at 3:00 AM on September 10th (UTC).
The outstanding assets will then be forced to sell at market prices. Alternatively, if the amount is unsellable, you can move it to your Spot Account.
Therefore, users must also update or cancel their spot copy trading portfolio by September 10th to avoid potential losses.
