Binance Could Delist Low-Volume Coins Soon As CZ Hinted

Binance could delist low-volume coins soon as the CEO of the exchange Changpeng Zhao noted so we read more in today’s binance news.

Binance is the largest crypto exchange by daily trading volume and in a few short years after the launch, it went on to become a leading company in the crypto space. Launching coins up for trade on the exchange created the so-called Binance Effect. This means that when a cryptocurrency is selected and launched for trading on the platform, the price usually undergoes a substantial surge. The CEO of Binance Changpeng Zhao hinted that it could start delisting the low-volume coins.

Binance could delist low-volume coins as explained in a Twitter thread, and as RookieXBT suggested, the delisting process will only be imposed to coins that do less than 10 BTC of daily volume. The CEO of the exchange engaged in the thread and provided a hint that they could consider doing so:

 “I think it is a good idea. If you are on Binance and still have no volume, then…”

Naturally, there are two sides to the debate as some users think that the merits of a coin should not be valued based on the volumes that they generate on crypto exchanges. People argue that they hold a coin for a long time and don’t really care about the daily volume. This is true as the merits of a cryptocurrency are definitely not associated with it being listed on a certain exchange like Binance. So why would someone care if the coin is listed or not, presuming that they are in it for the technology?

At this point, it becomes clear that this particular narrative doesn’t stand on solid ground because people are concern about the price and some are even concerned about the technology. if an investor is holding a cryptocurrency for the long-run, with it being listed on Binance, it should not make a difference. however, this is not the case usually as people are rarely in it for the technology. The main concern is that if Binance starts delisting low-volume coins en-masse, it could cause a larger upset in the market because of the “Binance Effect.”

When a cryptocurrency is listed on Binance, it usually goes through a substantial increase but the opposite can happen as well. Last year, the exchange delisted Bitcoin SV and it dropped by more than 10% right after the news.