30s Summary
Binance, a major cryptocurrency exchange, will suspend trading of five digital currencies from 10 December. Gifto, IRISnet, SelfKey, OAX, and Ren are falling short of the industry standard, though the precise reasons remained undisclosed. This announcement caused significant price drops for these tokens, decreasing by nearly 40%. The future of these coins, which all support different blockchain solutions, is uncertain as they might be exchanged for stablecoins from 13 December.
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Binance, the big crypto exchange, is going to stop trading five digital currencies (Gifto, IRISnet, SelfKey, OAX, and Ren) because they’re not meeting standard industry requirements. This all kicks off from December 10. This news caused a bit of panic and prices dropped significantly for these tokens, falling by nearly 40%.
Binance is a big player in the crypto world, with 386 tokens to its name and over 1,000 trading pairs. On November 26 alone, trades done on Binance were worth $44 billion, a 20% increase from the day before.
The company keeps things under wraps and didn’t say why exactly these tokens weren’t up to scratch. However, Binance did mention some of the factors it looks at when judging tokens such as the team supporting the coin, how vulnerable it is to attacks, its trading volume and liquidity, and how eager they are to cooperate during routine checks.
The tokens being removed all support different blockchain solutions, like Bitcoin gifting to decentralized finance services. Lately, these tokens haven’t been trading as much. For example, Ren trading went down from $34 million in March to almost $6 million in early November. Meanwhile, OAX went from $101 million in trades in March to $468,000 in October. When a coin doesn’t have a lot of trading activity, it’s usually a bad sign because it shows there’s not much interest in or support for the coin.
Members of the Gifto group didn’t hold back their complaints about the company on Telegram. One member was disappointed with the lack of updates on social media. As of December 11, any transfers of the delisted coins to Binance won’t be counted. Come December 13, these coins might be swapped for stablecoins, though no guarantees on that.