Crypto trading powerhouse Binance is set to remove five tokens from its listings by December due to non-compliance with industry standards. The tokens headed for exit are Gifto (GFT), IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN). Trading, loans, and futures positions on these tokens will be closed as of December 3rd. Following this announcement, a massive sell-off ensued, causing a near 40% drop in the value of these tokens.
Binance is the leading crypto exchange in the world by trading volume. Currently, it lists 386 tokens and 1,275 trading pairs. On November 26th, the trading volume on Binance was an impressive $44 billion – a nearly 20% increase within 24 hours. While specific non-compliance issues were not disclosed, Binance did reveal a list of key evaluations it uses for token listings, which includes team commitment, development quality, trading volume, liquidity, stability, security, and responsiveness to due diligence.
The tokens being delisted are associated with various blockchain solutions, from gift-giving on the blockchain to decentralized exchanges and interoperability services for decentralized finance. Most of these tokens have recorded lower trading volumes over the last few months, raising concerns about liquidity and adoption. For example, data from CoinMarketCap indicates that REN’s trading volume dropped from $34 million in March to nearly $6 million in early November.
Many members of the Gifto community have been vocal about their disappointment, criticizing the lack of updates from developers. Following the delisting, Binance issued a warning to users that deposits of these tokens will not be credited after December 11th, and withdrawals will cease to be supported from December 12th. The tokens may potentially be converted into stablecoins on behalf of users after December 13th, but there is no guarantee.