Binance Ceases Trade of Cryptocurrencies CLOAK, MOD, SALT, SUB, and WINGS
On February 15, 2019, Binance announced that it has decided to cease tradings and transactions with five tokens – CLOAK, MOD, SALT, SUB and WINGS.
Reasons for the Delisting
In their press release, Binance argues that according to their standards and performance criteria these five coins and tokens are no longer suitable for trade. The company conducted a detailed review of the tokens to determine if they meet all the expectations of Binance’s customers.
The criteria according to which the tokens were evaluated included a review of their potential for development and growth, the stability of their smart contracts, and their contribution to the cryptocurrency ecosystem among others.
Following the detailed investigation into each of the five tokens, Binance concludes that they do not answer all expectations of the trading company, and the effective decision would be to delist them. After the conclusive results of this investigation Binance released a tweet confirming that they will cease trading with these coins.
Because of Binance’s decision to drop these coins, numerous customers of the platform will be affected. In their press release the company advises customers to withdraw any funds they have in the affected currencies, as they will be available until 22 May 2019.
This inconvenience will likely divert a lot of business from Binance. Several other exchanges decided to drop currencies recently, and this led to a significant outflow of their customer base. An example of such a case is Bittrex, who famously delisted Bitcoin after having problems with repaying loss covers.
The major problem customers will face is the losses they will endure because of the delisting of the currencies.
Users of the platform will have to take all their investments and deposit them in another exchange, however such transactions, and given that they have to be performed in bulk, devalue their coins. Therefore, customers might face a drop in the value of their investment, which will be forcefully manufactured by Binance and their decisions. This inconvenience is a predicament of an even larger loss of clients for the company.
On the other hand, according to the company, these measures were undertaken with the sole mission to meet the standards and expectations of their clients.
Therefore, this decision can affect the company’s customers in one of two ways: it will either reassure them and prove to them that the exchange upholds its’ standards, or it will divert customers who wish to trade in these coins, and would potentially lose money because of the delisting.