Leading cryptocurrency exchange Binance has announced its plans to delist the WazirX (WRX) token on December 25, 2024, resulting in a sharp decline in its value. The decision relates to periodic reviews and ensuring token compliance with the platform's standards.
Reasons for Delisting
Binance explained that the delisting follows their periodic asset reviews to ensure that they meet established standards such as development activity, network stability, trading volume, and regulatory compliance. 'When a coin or token no longer meets these standards, we conduct more in-depth reviews and potentially delist it,' according to Binance.
WazirX’s Activities and July Hack
In July 2024, WazirX experienced a significant hack that resulted in losses of over $230 million. Users faced uncertainty regarding fund recovery. Recent wallet activity showed $200 million worth of crypto transferred from a Binance-linked wallet, matching the missing hack funds.
Sharp Decline of WRX Token
Binance's announcement led to a drop of over 57.55% in WRX's price. As of this writing, WRX trades at $0.1019, while earlier, it was priced at $0.2494.
Binance's decision to delist WRX and other tokens highlights the importance of maintaining platform standards to avoid sharp token value changes. The time allocated for delisting allows traders to evaluate their next steps.
