Cryptocurrency exchanges added 100s of coins during the bull run, and now it seems that the time has come to remove some of them. Exchanges are considering to delist a number of altcoins due to liquidity issues.
The bear market might’ve shown some signs of reversal earlier this week, but things are not taking any definitive direction as of now. And that is taking the toll on entire market in many ways. So far we’ve seen the impact in form of layoffs and lack of interest from Wall Street, but now a new impact is also becoming visible. A number of altcoins are now on the verge of bring delisted from exchanges, primarily because of the liquidity issue arising after the bear phase.
This week two major exchanges decided to put a number of altcoins on notice for a possible delisting. The exchanges which did this are Kucoin and Huobi. While Kucoin is world’s 54th largest exchange by trade volume, Huobi is 3rd largest. Kucoin has disqualified 10 tokens from being traded on its platform as they failed to meet the listing requirements set out in Special Treatment Rule (ST Rule). The coins on the verge of being delisted are placed under Special Treatment by the exchange, and the special treatment calls for a mandatory review of their health over a specified period of time. This is done specially when there are liquidity issues with the coins. The ST rules page on Kucoin website says:
“The exchange may delist … the project (if it) fails to meet the basic liquidity requirements by the end of the observation period.”
The 10 coins currently under ST include Bread, Bitclave, WePower, Ethland, Bitcoin Gold and Mobius. As of now only trading and deposits of these coins have been suspended, but withdrawals are being allowed. If things don’t improve in time, soon these tokens may be delisted completely from Kucoin. Company said that this decision has been taken to provide a solid user experience.
A similar story is playing out at Huobi too. The company is planning to delist as many as 32 coins from its platform according to a latest announcement. The exchange had said:
“In order to promote the healthy development of the blockchain industry and protect the legitimate rights and interests of investors, Huobi regularly carries out comprehensive reviews of the listed tokens in accordance with the Token Administration Regulations of Huobi.”
Huobi will reexamine the liquidity situation of these 32 assets today, and if they still fail to meet the requirements they’ll be traded under caution with a significant risk of being delisted. Some of these tokens include Enigma, Datum, My Token, Medishares, WePower, Appcoins, and Bitcapital Vendor.
It will be interesting to see how many of these coins are removed now.