On November 26, Binance announced plans to delist five tokens: Gifto (GFT), IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN), citing non-compliance with industry standards.
Binance's Delisting Decision
Binance revealed that it will delist trading pairs for the aforementioned tokens by December 10. Arbitrage strategies, loans, and futures positions for these tokens will be closed on December 3. Isolated and cross-margin borrowing was suspended starting November 27. This announcement led to a nearly 40% drop in token prices, bringing them to minimal values.
Impact on Tokens and Projects
The delisted tokens represent projects spanning blockchain gift-giving, decentralized exchanges, and DeFi interoperability solutions. These tokens have already experienced a decrease in trading volumes. For instance, Ren's trading activity fell from $34 million in March to $6 million in November, while OAX saw a drop from $101 million in March to $468,000 by October. Low trading volumes are often indicative of poor liquidity and limited adoption, raising concerns for both projects and investors.
Community Reaction
Some Gifto community members on Telegram expressed dissatisfaction with the lack of communication from developers. One user complained: "I lost more dollars in this project and gave up because the devs don’t even post anything regarding this issue on their social media." Binance warned users that token deposits would not be credited after December 11, with withdrawals ceasing after December 12. Tokens may be converted into stablecoins after December 13, but the exchange offered no guarantees.
Binance's delisting decision has caused a sharp decline in token prices and concern among projects and their communities. This underscores the importance of continuous compliance with industry standards and maintaining good liquidity.
