This part of the article is in continuation of Part 1, Part 2 of the multipart article “Troubles of Crypto – Shady Exchanges”
4. Delisting Assets
It is such a coincidence that this part of the article is being published at the same time when some exchanges are being busy in delisting assets. these exchanges are-
Bittrex– Bittrex which is one of the big exchanges will be delisting several assets this month. total of 9 markets will be removed
Markets which were removed on May 3, 2019.
Markets which will be removed on May 17, 2019.
Markets which will be removed on May 24, 2019.
Poloniex– has come up with an announcement for delisting of several assets from its platform. poloniex announced that.
“On Friday, May 17th, at 12:00pm ET, markets for the following assets will be disabled on Poloniex: SYS, SBD, HUC, XCP, NMC, PPC, and BURST. Please finalize all trades and close any positions in these assets prior to May 17th. In addition, we have temporarily re-enabled withdrawals for the following delisted assets: MINT, MYR, GRS, QTL, and RDD. The withdrawal deadline for these assets is as follows:
SYS: June 3rd at 12:00pm ET
MINT, MYR, GRS, QTL, and RDD: June 10th at 12:00pm ET
SBD, HUC, XCP, NMC, PPC, and BURST: June 17th at 12:00pm ET “
Here one thing of note is that both of the exchanges decided that these coins do not deserve to be listed in their exchange market and removed them. They did not even think that users of their platform deserve to learn about any rational explanation behind their action, while assets they invested in will be delisted and whenever such exercise is carried out loss is always on the side on investors of that coin/token.
Delisting of crypto coins/token/assets is a process which is carried out by almost all the cryptocurrency exchanges. There are several reasons why crypto assets are delisted, some of the genuine ones are as-
- Abandoning of the project by Dev team/ promoter community.
- Unstable blockchain.
- Unsupportable Wallet.
- Using obsolete technology.
- Forking leading to no consensus among the community.
- Bugs in software/Exploit Vulnerabilities
- Scam coin/Token
- Unethical practices of Team, Promoters or Anti-investor behavior
While there are also reasons which are not related to the above points and some are shady ones as-
- Demand of money/funds by exchanges, as in case of Bittrex and Bitcoin gold
- Expiration of Period of listing paid for.
- Removal due to limited exchange capabilities regarding active markets.
While genuine points demand delisting of Coin/Token to prevent loss to new investors, No such point is provided to users while delisting them, causing all to speculate that if there was any reason to delist at all or not.
Most of the time Delisting happens just on whims of cryptocurrency exchange management to have some change or due to limited tradable asset capability of exchange, which causes them to delist old ones to provide entry to new ones.
In both of recent cases, both exchanges just announced their decision leaving investors in crisis. it is highly evident that current price of altcoin is highly down in respect of USD and BTC both, delisting at this time will provoke users to sell assets at low prices resulting in their investment in heavy loss, also due to heavy sell buyers are in very less numbers causing lot of investors total loss in their investment.
While listing and delisting token can be termed as a right of cryptocurrency exchange administration to do their business efficiently, what is needed is more information and transparency in these cases. Delisting involves customer funds too which should not be taken for granted. Hence in process of delisting, users should be the driving force, who are provided more information about delisting of any asset and participation in the form of voting should be initiated too.
User-driven delisting will keep bad coins out of the exchange and good coins in the exchange, resulting in fair development of crypto exchanges and crypto world, which is not happening as of now.
Part 4 .