The world’s largest crypto exchange by trading volume, Binance is known for regularly assessing tokens listed on its platform and moving to delisting ones that don’t meet certain requirements. And following its latest assessment, three tokens are set to be delisted following failure to meet the required standard.
Binance to Delist SNM, SRM, YFII
The crypto exchange announced it would delist three tokens on August 22. These include SNM, the native token of Sonm, a decentralized fog computing platform; SRM, the native token of the decentralized exchange (DEX) Serum built on Solana; and YFII, the native token of DFI.Money, a fork of the decentralized finance (DeFi) aggregator platform, Yearn Finance.
Although Binance didn’t give any particular reason for this decision, it is clear that these tokens haven’t met the “high level of standard” that the exchange expects from all tokens listed on its platform.
The crypto exchange also takes certain factors into cognizance when making these decisions. One is whether the team has shown continued commitment to the project as some project founders are known to become laidback towards further developing their project once it has hit certain milestones. The crypto exchange also considers whether development plans made by the team are sustainable or lacking in quality.
Trading volume and liquidity are other key factors in this. Tokens with little or no liquidity flowing into their ecosystem provide little or no value to exchanges in terms of transaction fees. Other factors include the network’s stability and security, the team’s public relations, fraudulent conduct, and nonresponsiveness to Binance’s due diligence requests.
SRM price succumbs to bearish pressure | Source: SRMBUSD on Tradingview.com
As part of the delisting process, trading pairs for these tokens will no longer be available on the platform. Users will also no longer be able to deposit these tokens into the platform after August 23. Other Binance products like Binance Pay, Loans, and Simple Earn will remove support for these tokens accordingly.
Users who may have these particular tokens in their Binance account still have ample time to withdraw, as withdrawals won’t cease until November 22. Where a user fails to withdraw these tokens on or before the stipulated date, Binance will convert their value to stablecoins and deposit it into the user’s Binance account.
This news is undoubtedly a major blow to these tokens and their community. As expected, these tokens’ prices have reacted negatively, experiencing a significant decline in the process. SNM is trading at around $0.06268, down 77.87% in the last 24 hours. SRM is trading at around $0.05074, down 28.81% in the last 24 hours. While YFII is trading at around $580.49, down 19.99% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Prestmit, chart from Tradingview.com