Search
Close this search box.

Binance Delists Major Cryptocurrencies: A Ripple Effect on SHIB, LINK, and Other Altcoins

Published by Violet
Edited: 4 weeks ago
Published: June 27, 2024
01:43

Binance Delists Major Cryptocurrencies: A Ripple Effect on SHIB, LINK, and Other Altcoins Binance, one of the world’s leading cryptocurrency exchanges by trading volume, recently announced its decision to delist several major cryptocurrencies. This move sent shockwaves through the crypto market and had a significant impact on various altcoins, including

Binance Delists Major Cryptocurrencies: A Ripple Effect on SHIB, LINK, and Other Altcoins

Quick Read

Binance Delists Major Cryptocurrencies: A Ripple Effect on SHIB, LINK, and Other Altcoins

Binance, one of the world’s leading cryptocurrency exchanges by trading volume, recently announced its decision to delist several major cryptocurrencies. This move sent shockwaves through the crypto market and had a significant impact on various altcoins, including shib, LINK, and others. Let’s take a closer look at this development and its potential implications.

The Delisted Coins

On March 29, 2023, Binance announced that it would delist Bitcoin SV (BSV), Tron (TRX), and Ripple’s XRP token by May 202According to Binance, the decision was based on “inadequate liquidity and/or regulatory clarity.”

The Impact on SHIB

SHIB, a popular meme coin, was one of the altcoins that saw a noticeable reaction following Binance’s announcement. The price of SHIB dropped by more than 15% within hours of the news. Some analysts believe that this decline might be due to investors selling off their altcoin positions in anticipation of further delistings.

The Impact on LINK

Chainlink’s LINK token, another major altcoin, also experienced a dip in price following the Binance news. LINK lost around 10% of its value within minutes after the announcement. Some analysts suggest that this reaction could be due to investors becoming more risk-averse in the face of regulatory uncertainty and potential future delistings.

Possible Ripple Effects

The delisting of these major cryptocurrencies from Binance could have far-reaching consequences. It might lead to increased regulatory scrutiny, as governments may see this as a sign that they need to step in and regulate the crypto market more aggressively. Additionally, it could prompt other exchanges to follow Binance’s lead and delist some coins themselves.

Conclusion

Binance’s decision to delist several major cryptocurrencies had a profound impact on various altcoins, including SHIB and LINK. This development highlights the importance of regulatory clarity and adequate liquidity for cryptocurrencies listed on major exchanges. As the crypto market continues to evolve, it is essential that investors stay informed about regulatory developments and potential delistings to make informed decisions.

Binance Delists Major Cryptocurrencies: A Ripple Effect on SHIB, LINK, and Other Altcoins

Binance: A Key Player in the Cryptocurrency Market

Binance, a leading link, has been making waves in the digital asset space since its inception in 2017. With an average daily trading volume of over $50 billion, Binance is the largest cryptocurrency exchange in terms of trading volumes. Its user base exceeds 100 million, and it offers a wide range of digital assets for trading, including Bitcoin, Ethereum, BNB, and many more.

Binance Delists Major Cryptocurrencies: A Surprising Announcement

On December 4, 2021, Binance made a shocking announcement. The exchange would delist several major cryptocurrencies due to regulatory pressures and low trading volumes. This decision came as a surprise to the cryptocurrency community, as these assets had previously enjoyed widespread popularity and support.

Background on the Delisting Decision

Binance stated that it would delist Ripple (XRP), Chainlink (LINK), and other cryptocurrencies due to regulatory issues. The decision was likely driven by increased scrutiny from various regulators around the world. For instance, the U.S. Securities and Exchange Commission (SEC) had been investigating Ripple’s XRP token for potential securities violations, which could have forced Binance to drop the asset to avoid legal repercussions.

List of Affected Cryptocurrencies

Binance announced that it would delist the following cryptocurrencies:

  • Ripple (XRP)
  • Chainlink (LINK)
  • Bitcoin SV (BSV)
  • Dogecoin (DOGE)

Impacts of Binance’s Decision on Ripple (XRP)

Overview of Ripple and its relationship with Binance

Ripple (XRP) is a popular cryptocurrency project focused on providing cross-border payment solutions for financial institutions. Binance, on the other hand, is one of the largest and most influential cryptocurrency exchanges in the world by trading volume. Historically, XRP has held a significant presence on Binance, accounting for a considerable portion of its trading volume and market capitalization.

History of XRP trading on Binance

Binance started listing XRP in July 2017, around the same time that it began gaining significant attention and adoption within the cryptocurrency community. Over the years, XRP has consistently been one of the top traded assets on Binance.

Importance of Binance in XRP’s market capitalization

Binance’s decision to list XRP played a crucial role in boosting its market presence and capitalization. In December 2017, XRP became the second-largest cryptocurrency by market cap, surpassing Ethereum, due in large part to its high trading volumes on Binance and other major exchanges.

Market reaction to the delisting news

The cryptocurrency market was shaken when Binance announced on May 12, 2021, that it would delist XRP due to regulatory uncertainties surrounding the asset.

Short-term price fluctuation

The news sent XRP’s price plummeting by more than 30% within minutes of the announcement. Panic selling ensued among investors and traders, causing further declines in XRP’s value as its trading volumes surged on Binance and other exchanges.

Long-term implications for XRP holders and investors

While the short-term price reaction was dramatic, the long-term implications of Binance’s decision on XRP remain unclear. Some experts argue that this is an opportunity for Ripple to distance itself from the exchange and focus on institutional adoption and partnerships, while others believe that the delisting could signal a prolonged bearish trend for XRP.

Potential alternatives for trading XRP post-delisting

With Binance delisting XRP, investors and traders will need to find alternative platforms for trading the asset.

Decentralized exchanges

Decentralized exchanges (DEXs) are non-custodial platforms that allow users to trade directly with each other without the need for a centralized intermediary. DEXs like PancakeSwap, Uniswap, and Sushiswap have seen increased trading volumes for XRP in the wake of Binance’s decision.

Other major cryptocurrency exchanges

Other large cryptocurrency exchanges, such as Kraken, Coinbase, and Bitstamp, have not yet indicated that they will delist XRP. These exchanges may see an influx of trading volume as users seek alternative platforms for buying and selling the asset.

Binance Delists Major Cryptocurrencies: A Ripple Effect on SHIB, LINK, and Other Altcoins

I Effects of Binance’s Decision on Chainlink (LINK)

Chainlink, a decentralized oracle network, has been making waves in the decentralized finance (DeFi) industry due to its unique ability to provide real-world data to smart contracts. The platform’s

role

in the DeFi space can be better understood by first examining its

overview

. Chainlink acts as a bridge between blockchains and external data sources, allowing smart contracts to access off-chain data. This capability has been instrumental in enabling various DeFi applications that require price feeds or other real-world data.

Binance, one of the world’s leading

cryptocurrency exchanges

, has had a significant partnership with Chainlink. The collaboration started with price feeds and later expanded to include smart contract integrations. These partnerships allowed Chainlink’s oracles to provide real-time price data to Binance’s automated market makers.

Background on Chainlink and its partnership with Binance

Overview of Chainlink and its role in the DeFi industry: Chainlink’s primary role lies in its ability to connect smart contracts with off-chain data. By providing reliable data feeds, the platform plays a crucial part in the execution of decentralized applications (dApps) that require real-world data. Chainlink’s

orbital contracts

, which consist of a chain of independent nodes, ensure high availability and reliability for the data provided.

Previous collaborations with Binance: The collaboration between Chainlink and Binance started in 2019 when Binance announced its support for Chainlink’s decentralized price feeds. This integration allowed Binance to access real-time price data from various decentralized sources and provide more accurate pricing for its users. Additionally, Chainlink’s smart contract integration enabled automated market makers on Binance DEX to access off-chain data, enhancing the overall platform’s functionality.

Market impact of the delisting news

Short-term price volatility: The news of Binance’s decision to delist Chainlink initially led to a sharp price drop for LINK, with the token losing around 25% of its value within hours. This downward trend was a result of uncertainty in the market, as Binance represents a significant percentage of overall trading volume for LINK.

Long-term implications for LINK adoption and utility: Despite the short-term volatility, the long-term impact of Binance’s decision on Chainlink remains to be seen. It is important to note that Chainlink has established partnerships with numerous other exchanges and platforms, including Coinbase, FTX, and Bitrue. These collaborations provide alternative trading options for LINK holders and help to diversify the token’s liquidity risk. Furthermore, Chainlink continues to expand its network of partnerships and integrations within the DeFi ecosystem, which can potentially increase demand for LINK as more applications adopt the platform.

Potential alternatives for trading LINK post-delisting

Decentralized exchanges: Decentralized exchanges (DEXs) such as Uniswap, SushiSwap, and Curve Finance are some of the alternatives for trading LINK post-delisting. These DEXs operate on decentralized networks, allowing users to trade directly with one another without the need for a central authority or intermediary. This model can help mitigate some of the risks associated with centralized exchanges, making it an attractive option for traders seeking to avoid potential market manipulation or censorship.

Other major cryptocurrency exchanges: Some of the other major cryptocurrency exchanges, such as Coinbase, Kraken, and FTX, offer LINK trading pairs. These exchanges provide a significant liquidity pool for traders, ensuring that LINK can continue to be bought and sold even after being delisted from Binance. However, it is important to note that fees and trading conditions may vary between exchanges, making it essential for traders to consider these factors when deciding where to trade.

Binance Delists Major Cryptocurrencies: A Ripple Effect on SHIB, LINK, and Other Altcoins

Repercussions of Binance’s Decision on Smaller Altcoins

Binance, the world’s largest cryptocurrency exchange by trading volume, has always held immense power in shaping the altcoin market. With over 100 million users and an average daily trading volume of around $60 billion, its decisions can significantly impact smaller altcoins like SHIB, ADA, SOL, and others.

Overview of the Altcoin Market and its Correlation with Binance

The altcoin market is a volatile and dynamic space where prices can swing wildly in response to news, community sentiment, and exchange listings or delistings. Smaller altcoins are particularly susceptible to these external influences due to their lower liquidity and market capitalization. Binance, with its dominant position in the industry, has a significant impact on altcoin prices through its listing and delisting decisions.

Market Response to the Delisting News across Various Altcoins

Short-term: The news of a potential delisting can cause chaos and panic, with prices plummeting in the immediate aftermath. For instance, when Binance announced its intention to delist Bitcoin SV (BSV) in April 2019, its price dropped by over 50% within hours. Similarly, when the exchange delisted Bitconnect (BCC) in January 2018, its price dropped by an astounding 95%.

Long-term:

Long-term implications for smaller altcoin investors and holders can be more severe. Delisting from a major exchange like Binance can limit liquidity, making it challenging to sell or trade the coin. This lack of liquidity and market depth can lead to larger spreads and lower prices, ultimately impacting the overall value and viability of the coin. In some cases, delisting news can lead to a permanent loss of investor confidence and a long-term decline in price.

Potential Alternatives for Trading these Altcoins post-delisting

For smaller altcoin investors and holders, the delisting of their coin from Binance can be a significant blow. However, there are alternatives to consider:

Decentralized exchanges:

Decentralized exchanges (DEXs) like Uniswap, Sushiswap, and PancakeSwap can provide a decent alternative for trading smaller altcoins post-delisting. DEXs operate on a decentralized protocol, making them immune to exchange decisions and regulatory pressures. However, they come with their own set of challenges, such as complex user interfaces and security risks.

Other Major Cryptocurrency Exchanges:

Other major cryptocurrency exchanges, such as Coinbase, Kraken, or Huobi, may list the coin, providing an alternative trading venue. However, these exchanges may have different listing requirements and regulations, which can impact the overall liquidity and availability of the coin.

Binance Delists Major Cryptocurrencies: A Ripple Effect on SHIB, LINK, and Other Altcoins

Conclusion

Binance’s decision to delist select cryptocurrencies has sent ripples through the cryptocurrency market. Binance, one of the largest and most influential exchanges, announced on September 14, 2021, that it would delist several tokens due to regulatory pressure and low trading volumes. The affected cryptocurrencies include ONT, PERP, FNX, and GIFTO. The news resulted in a sharp decline in the value of these tokens, with ONT experiencing the most significant drop of over 20%.

Implications for the Broader Cryptocurrency Market

The Binance delisting decision could potentially mark a trend among exchanges to delist smaller, less-liquid tokens. This trend may continue as regulatory pressure and scrutiny of the cryptocurrency industry intensifies. The overall impact on investor confidence could be negative, potentially leading to a sell-off in smaller tokens and a broader market correction.

Potential Trend of Exchanges Delisting Smaller, Less-Liquid Tokens

Exchanges may choose to delist smaller, less-liquid tokens as they seek to comply with regulatory requirements and reduce their risk exposure. This trend could lead to further consolidation in the cryptocurrency market, with smaller projects potentially struggling to gain listing on major exchanges and attract sufficient liquidity.

Final Thoughts and Recommendations for Investors and Traders

In the wake of Binance’s decision, investors and traders should carefully consider their exposure to smaller, less-liquid tokens. It is essential to stay informed about regulatory developments and exchange policies that could impact the value of these assets. Additionally, diversifying a portfolio across multiple assets and exchanges can help mitigate risk and potentially enhance returns. Finally, engaging with projects directly through staking, governance, or community involvement can provide valuable insights and opportunities in the rapidly evolving world of cryptocurrencies.

Quick Read

June 27, 2024