TL;DR
- Binance will delist six altcoins (CVP, EPX, FOR, LOOM, REEF, VGX) on August 26, 2024, causing their prices to drop significantly.
- Affected trading pairs will be removed, and existing trade orders will be canceled; users can withdraw these tokens until November 26, 2024.
- Binance may convert these tokens into stablecoins later, and an automatic conversion of 15 previously delisted altcoins into USDC is planned for September 2, 2024.
Binance has revealed that it will be delisting six altcoins. The affected cryptocurrencies—PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX)—saw significant drops in their values, with each plummeting by double digits right after the news broke.
Historically, news regarding the listing or delisting of altcoins on Binance has greatly influenced their market prices. Starting from August 26, 2024, at 03:00 UTC, Binance will cease all spot trading pairs for these tokens.
The pairs affected include CVP/USDT, EPX/USDT, FOR/BTC, FOR/USDT, LOOM/BTC, LOOM/TRY, LOOM/USDT, REEF/TRY, REEF/USDT, and VGX/USDT. Subsequently, the exchange will automatically cancel all existing trade orders.
Binance regularly performs assessments to analyze various elements, including the dedication of the team, the quality of development activities, trading volumes, liquidity levels, network security, overall stability, public engagement, responsiveness to due diligence inquiries, and adherence to emerging regulatory standards.
Immediate and Substantial Price Effects
The price effects were both immediate and substantial. CVP plummeted nearly 14%, EPX dropped by 22%, FOR by nearly 20%, LOOM by almost 13%, REEF by over 20%, and VGX by around 18%.
The steep declines highlight how sensitive the market is to exchange delistings, which frequently serve as an indicator of a token’s perceived legitimacy. Starting August 27, 2024, Binance will cease to credit deposits for these tokens. Nevertheless, users will still be able to withdraw these tokens until November 26, 2024.
Future Conversions and Additional Announcements
Later, Binance may convert these tokens into stablecoins, although this is not guaranteed. A separate notification will precede any such conversion. In a recent update, Binance has announced to its users that there will be an automatic conversion of 15 altcoins that were previously delisted into the USDC stablecoin.
This procedure will rely on the user holdings documented in the snapshot taken on September 2, 2024, at 00:00 UTC. The goal is to offer users a reliable store of value once these tokens are withdrawn from active trading.
The altcoins to be converted include Bitcoin Gold (BTG), Bitcoin Standard Hashrate Token (BTCST), Bitshares (BTS), District0x (DNT), Groestlcoin (GRS), Hegic (HEGIC), MobileCoin (MOB), Monero (XMR), Monetha (MTH), Multichain (MULTI), Navcoin (NAV), Sologenic (SOLO), Spartan Protocol (SPARTA), Symbol (XYM), and Tribe (TRIBE).
