Delisting Monero on Binance: causes and consequences

The Binance exchange announced the Monero dilisting. This led to a sharp drop in the XMR rate. What other coins are subject to deletion? Reasons for dislisting XMR? Possible consequences of deleting tokens for the Binance exchange? Where is the cryptocurrency world heading?

Delisting Monero and other coins

The management of the exchange warned its users that on February 20, the XMR token will be removed from the trading list. At the same time, token withdrawal will be available until May 20. After dealing, all orders will be automatically closed. Starting May 21, the remaining coins can be converted into stablecoins. Although, the management of the exchange does not guarantee that the conversion will take place.

In addition to Monero, the following coins will be removed: ANT (Aragon), MULTI (Multichain), VAI (Vai).

Reasons for dislisting

The official commentary is thought-provoking. The management of the exchange named several reasons that formed the basis for the decision.

Contributing to a healthy and sustainable cryptocurrency ecosystem.

Evidence that the management of the identified projects are engaged in unethical, negligent or fraudulent practices.

In addition, they cite the fact that project management is slow to respond to messages about the need to conduct an audit of a cryptocurrency project.

The token rate reacted instantly. Almost immediately after the announcement of the deallisting, the XMR rate fell 35%. That is, to a 1.5-year minimum. The token demonstrated such indicators (after the fall) in June 2022.

At the time of writing, Monero's performance looks like this:

Consequences of dislisting and what to expect in the future

Personally, I believe that the reasons lie in the very essence of the coins. Monero is focused on maximum privacy. The project management has set itself the goal of complying with the principles of cryptocurrencies. After all, one of the pillars of the cryptocurrency world is confidentiality. The Binance exchange itself is far from complying with this principle. Especially after they agreed to “dance to the tune of American regulators and law enforcement agencies.

Some experts (for example, cryptocurrency trader John Brown) believe that such a decision could negatively affect the Binance exchange itself. Yes, the situation is unpleasant for Monero. But at the same time, this decision may become the main reason for the future gradual decline of the Binance exchange. Although, Binance is not the first exchange to remove Monero. At the end of last year, the management of the OKX exchange made an identical statement. In addition to XMR, another coin that focuses on privacy will be removed. ZEC (Zcash) came under attack. If the trend continues, then coins and projects that focus on privacy will become rogue. But at the same time, exchanges may become popular, where privacy will come first.

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Pictures: screenshots