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Delisting events in the cryptocurrency market, where exchanges remove certain tokens from their platforms, often cause unexpected price movements. While delisting is typically seen as negative, some coins experience a short-lived pump before or during the process. Below are the key reasons why this phenomenon occurs:

1. Speculative Buying
Delisting announcements often create speculative opportunities. Some traders believe that once a coin is removed from a major exchange, it will become scarce, increasing its demand on other platforms. This belief can lead to a surge in buying activity, temporarily inflating the coin's price.

2. Community Support and Resilience
Communities around certain tokens often view delisting as an attack on their project. In response, loyal supporters may organize buy-ins to pump the coin’s price as a show of strength or to generate publicity. These community-driven rallies can create temporary upward pressure on the coin’s value.

3. Arbitrage Opportunities
Delisted coins may still trade on smaller or decentralized exchanges. Traders seek arbitrage opportunities by buying the coin cheaply on the delisting platform and selling it for a higher price elsewhere. This creates a surge in demand before the delisting takes effect.

4. Fear of Missing Out (FOMO)
The increased attention on the delisted coin often attracts speculative retail traders. Many jump in, hoping to profit from the volatility or believing in a potential recovery. This FOMO amplifies the price movement, even if it lacks fundamental justification.

5. Market Manipulation
Whales or large holders may see delisting announcements as an opportunity to manipulate the market. By artificially inflating the price, they can offload their holdings at a higher valuation before the coin loses liquidity on the major exchange.

6. Scarcity and Liquidity Concerns
Once a coin is delisted, its liquidity often drops significantly because it is no longer accessible to the majority of traders. The anticipation of this reduced availability can drive a "last chance" buying spree, temporarily pushing the price higher.

Risks of Trading During Delisting Pumps
Volatility: Prices can spike rapidly and crash just as quickly, making these trades highly risky.
Liquidity Issues: Post-delisting, it may be difficult to sell the coin due to reduced trading volume.
Lack of Fundamental Support: The price increase is often not tied to real developments or improvements in the project, making the pump unsustainable.
Conclusion
While pumps during delisting announcements may seem counterintuitive, they are often driven by speculation, market psychology, and manipulation rather than genuine value. Traders should approach such events with caution, as the price movements are typically short-lived and highly volatile. Understanding the dynamics of these pumps can help investors make informed decisions and avoid potential losses. #GFT/USDT #OAX/USDT #IRIS #REN
$GFT
{spot}(GFTUSDT)
$IRIS
{spot}(IRISUSDT)
$OAX
{spot}(OAXUSDT)

Key takeaways:
Binance delists tokens due to low trading volume, regulatory or security risks, lack of project commitment and utility issues.Delistings of tokens can cause price swings, liquidity crises and withdrawal deadlines, requiring you to act promptly to secure your assets.You should withdraw tokens, close active orders, and monitor Binance’s updates to avoid losing access to funds after withdrawal deadlines.You may transfer delisted tokens to private wallets or other exchanges. Binance may offer limited swaps for delisted assets.
Binance’s decision to delist IRIS, KEY, OAX and REN on Dec. 10, 2024, has prompted investors to go searching for how such a delisting impacts tokenholders and traders. Delisting these tokens will also result in the removal of related trading pairs such as IRIS/BTC, IRIS/USDT, KEY/USDT, OAX/BTC, OAX/USDT, REN/BTC and REN/USDT on Binance.

As one of the world’s largest cryptocurrency exchanges, Binance’s delistings can send shockwaves through the crypto market, causing price swings and liquidity crises and necessitating the need for investors to withdraw delisted holdings promptly.

To mitigate potential risks and safeguard investments, understanding various aspects of Binance’s delisting procedures is crucial. This Binance delisting guide explores the reasons for token delistings, the effect of such action on investors and essential steps to take if a token is scheduled for delisting.
Binance announcement for delisting cryptocurrencies

Why does Binance delist cryptocurrencies?
Cryptocurrency exchanges need to review listed assets regularly to uphold quality standards, user safety and platform security, which is important to uphold their own reputation. Binance has several parameters for assessing the suitability of cryptocurrencies for listing:

Lack of project and team commitment: To retain listing on Binance, projects need to showcase sustained commitment and innovation. Binance considers a lack of communication or project abandonment by development teams a significant risk factor.Markets: Crypto assets with low trading volumes and liquidity are likely to be delisted by Binance. Binance may delist such cryptocurrencies to focus on digital assets, robust market demand and stability.Regulatory risks: Regulatory scrutiny can almost certainly lead to delisting. For instance, if a token is functioning in specific jurisdictions without requisite approvals, Binance may delist it to avert legal complications.Security risks: Binance may delist assets that demonstrate recurrent security vulnerabilities, such as noncompliance with platform security protocols and hacking incidents resulting from flawed smart contracts.Ethical risks: If a project engages in deceptive marketing or fraudulent practices, it may result in delisting as the crypto exchange safeguards user interests and upholds platform integrity.Utility issues: Binance favors projects that have real-world applications or contribute substantial value to the cryptocurrency ecosystem. Cryptocurrencies that fail to meet these criteria are potential candidates for delisting.
Binance conducts regular reviews of enlisted cryptocurrencies to ensure that only high-quality assets are accessible on the exchange, thereby minimizing risks for users. If a token shows notable improvements such as stronger demand or enhanced security in the future, it may be relisted on Binance.

Did you know? Binance delisted Rupiah Token (IDRT), Keep3rV1 (KP3R), Ooki Protocol (OOKI) and Unifi Protocol DAO (UNFI) on Nov. 6, 2024.

How Binance token delistings work
The Binance token removal process channels a sequence of events that change how you can trade and store crypto assets:

Notification sent to users: To inform users about the delisting of cryptocurrencies, Binance may send multiple notifications via the platform and email, urging timely action to secure funds. Usually, there is ample time for you to make arrangements if you hold assets to be delisted.Binance regularly updates users on delisting

Trading suspension of cryptocurrencies: Trading for the tokens is suspended within one to two weeks of the announcement. During this time, users can still trade the asset, but once trading is suspended, no further trades can be made. All your outstanding orders will be automatically nullified upon the delisting of the trading pair.Deposit suspension: Any deposits made for delisted tokens will not be credited to your account. Binance stopped accepting deposits for GFT, IRIS, KEY, OAX and REN on Dec. 11 at 03:00 UTC.Withdrawal window: Binance provides a withdrawal window, typically lasting 30 to 90 days, allowing users to move the delisted token to external wallets or other exchanges. After this period, Binance fully removes support for the asset. Withdrawal services regarding the delisting on Dec. 10, 2024, will be permanently disabled from Feb. 12 at 03:00 UTC.Payment restriction: Binance will cease processing all payments and transactions associated with delisted cryptocurrencies after the specified deadline.
How does delisting affect related cryptocurrencies in your crypto wallet?
When Binance delists cryptocurrencies, how it’s handled in user wallets depends on actions taken during the withdrawal period.

During the withdrawal period: You can transfer the delisted tokens to a private wallet or another exchange that supports them. Binance allows unrestricted withdrawals during this time, and you retain control over your assets.After the end of the withdrawal period: Binance disables withdrawals of the delisted tokens, making them inaccessible for you. But you keep the ownership, and access may be restored if Binance relists any of these cryptocurrencies later.Holding cryptocurrencies in a private wallet: When you transfer delisted tokens to a private wallet, it ensures continued ownership and control. While you can no longer trade on Binance, you may trade these cryptocurrencies on other crypto exchanges that still support them or hold the tokens for potential future use.Conversion into stablecoins: After Binance stops withdrawals for delisted tokens, it converts them into stablecoins for the users. The funds from these conversions may then be deposited into users’ Binance accounts. A separate notice will be issued prior to the conversion of delisted tokens into stablecoins.Exchange offers: Sometimes, Binance may allow you to swap delisted tokens for any other cryptocurrency at a pre-determined rate. But this is not common and may only happen for major delistings.

Did you know? According to Binance’s announcement on Feb. 6, 2024, the crypto exchange delisted Aragon (ANT), Multichain (MULTI), Vai (VAI) and Monero (XMR).

What to do before a delisting deadline on Binance
To protect yourself from losses in case of a delisting of cryptocurrencies, acting promptly is imperative. You need to do the following once a delisting announcement is made.

Close open orders: Review and cancel all active orders about the delisted tokens before the relevant deadline. If the tokens are to be delisted on Dec. 6, 2024, you must close open orders before Dec. 10, 2024, to prevent potential complications.Withdraw your tokens: You must withdraw the delisted tokens by the deadline. For instance, in the case of GFT, IRIS, KEY, OAX and REN tokens, you need to transfer these tokens to an external wallet before Feb. 12, 2024. If you fail to do so, you may lose access to your funds.Stay informed: Keep track of Binance’s official announcements for any updates or additional directives regarding the delisted tokens.
Did you know? In 2023, Binance founder Changpeng Zhao pleaded guilty to United States money laundering charges. This led to Binance facing a $4.3-billion penalty. Subsequently, Zhao stepped down as CEO, and Richard Teng was appointed as the new CEO.

How does delisting from Binance differ from removing a specific trading pair?
When Binance delists a token, it is completely removed from all services on the crypto exchange, including all related spot/margin trading pairs.

In contrast, removing a spot/margin trading pair does not affect the availability of the underlying tokens on Binance spot/margin. You can still trade the base tokens and quote assets of the delisted pair through other trading pairs available on Binance.
Delisting a token vs. removing a trading pair

Delisting An opportunity to explore other assets
Delisting of cryptocurrencies on Binance is part of the platform’s broad strategy to maintain a high-quality platform and safeguard user interests. While delisting does impact cryptocurrencies, it also provides you an opportunity to explore other assets and diversify your portfolio, which helps prevent losses in the long run.

Staying informed about new listings and airdrops, you can continue to ride the growing cryptocurrency market. As an investor, delisting cryptocurrencies may come across as a bit of a hassle for you if you hold these cryptocurrencies, but with timely action and a long-term strategy, you can turn the delisting into an advantage.