The cryptocurrency market is dynamic and ever-changing, with new projects emerging and old ones disappearing every day. One of the consequences of this is delisting – read on to find out what this term means.
What Is Delisting?
Delisting is the process of removing a cryptocurrency from a trading platform or exchange. When a cryptocurrency is delisted, it means that it is no longer available for trading or purchase on the platform and users will have to withdraw their funds to a different exchange if they want to continue holding the asset.
What You Need To Know About Delisting
There are various reasons why a cryptocurrency may be delisted from an exchange, including:
- Lack of adoption
- Low trading volume
- Security concerns
- Legal issues
- Failure to comply with the exchange’s listing requirements
- Other reasons that may lead an exchange to decide that dealing with the project is unacceptable or risky
Delisting can have a significant impact on the value and liquidity of a cryptocurrency, and it can be difficult for investors to sell their holdings if there is limited demand for the asset on other platforms.
Crypto delisting typically follows these steps:
- Notification. The exchange may provide advance notice to users that a cryptocurrency is being delisted.
- Freeze of trading. The trading of the affected cryptocurrency may be temporarily suspended to allow users to withdraw their funds.
- Withdrawal period. Users are given a specified period of time, usually a few weeks, to withdraw their holdings of the delisted cryptocurrency to a different exchange or wallet.
- Removal from the trading platform. After the withdrawal period has ended, the cryptocurrency is officially delisted from the exchange and is no longer available for trading or purchase.
Note that some exchanges give advance notice before delisting a crypto asset, while others may do it without prior warning. In either case, investors must take steps to ensure they are not holding a large amount of crypto that is at risk of being delisted.
