Cryptocurrency Delisting - what it is and how it happens

More recently, we talked about what a cryptocurrency listing is. Recall that this is the inclusion of a token in the list of assets available for trading on a specific crypto exchange.

It is obvious that delisting is the reverse process, that is, the exclusion of cryptocurrencies from such a list and the termination of its circulation on the exchange. In other words, it becomes inaccessible for absolutely all operations.

Why is delisting happening? As a rule, this is due to the fact that the exchange considered this or that asset questionable and decided to get rid of it in order not to harm its reputation. Also, sometimes the reason for delisting may be the asset's non-compliance with the exchange's established requirements. And another reason is that the trading volume is too small for a long time. It is obvious that exchanges work with coins in order to receive commission profits from transactions, and if some asset is completely unclaimed, then it simply does not represent any value for the exchange.

It should also be taken into account that delisting is carried out by each crypto exchange separately. That is, if an asset has been excluded from any one site, it does not mean that it has become unavailable absolutely everywhere. However, even one delisting procedure is already a serious blow to the reputation of the token, which often causes a chain reaction.

As for the effect of delisting on the asset price, everything is obvious here. Perhaps this is one of the most negative events that can happen to a coin. Delisting on one, and even more so several large and reputable exchanges can instantly collapse quotes, and without any real chance of their return to previous values.

Now another logical question arises - what to do if a cryptocurrency that has been delisted has already been purchased? The situation is simplified if the token is traded on several exchanges. In this case, the investor has time to transfer it to another site and perform all planned operations on it. Things are worse if the asset is traded on only one exchange. Then it is very important to respond promptly and very quickly to announcements about the upcoming delisting, which all exchanges with a good reputation place in advance. Therefore, if you find out that an asset is scheduled to stop trading, then you need to sell it as soon as possible. Otherwise, you may be faced with the inability to exchange it or withdraw it to an external account.

Thus, delisting is a fatal procedure for the vast majority of crypto assets. Therefore, traders should always keep their finger on the pulse and regularly monitor this issue. And even better - to include in the portfolio only those assets that are traded on several large and reliable exchanges at once.

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