Binance CEO Hints at Delisting Low-Performing Tokens

The largest crypto exchange in the world, Binance has daily trading volumes worth billions of dollars. However, this hasn’t stopped the exchange from cutting out assets that it believes are not performing well enough. Quite recently, Changpeng ‘CZ’ Zhao, the chief executive at Binance, hinted that there was a possibility of more assets being delisted. Earlier this week, RookieXBT, renowned crypto analyst and trader, had suggested on Twitter that the exchange should delist all those coins on its platform that are not trading as much as 10 BTC on a daily basis, which is the equivalent of $130,500. 

The CEO had engaged with the Twitter thread and said that Binance might just follow up on the suggestion. He said that it seemed like a good idea because if the coins didn’t have any volume. He hinted that the days of the coins that were not performing well would be numbered on their platform. There have been extensive debates about the value and volumes of a cryptocurrency. There are some that believe that the true value of a digital asset doesn’t depend on how much of the asset is traded within a single day. These are the investors who believe in the asset’s true potential and prefer to hoard it for themselves.

However, the crypto space like any other market, is also driven by liquidity. Liquidity is essential for exchanges to earn revenues, which means that coins that are not doing well may not appear to be worth it. The same logic can also be applied to the exchange themselves. If an exchange platform is not able to earn much in regard to liquidity, it will eventually shut down. Binance is quite familiar with this conundrum. Earlier this month, the crypto exchange had announced that it was shutting down its Jersey-focused subsidiary known as Binance Jersey. 

They had initially launched Binance Jersey with the purpose of boosting its crypto expansion into the crypto market in Europe. But, things didn’t pan out the way they had hoped. According to reports, Binance had announced last week that it was shutting down Binance Jersey. Although the company didn’t provide any details about why it was shutting down the subsidiary, there is a possibility that low trading volumes could be the reason. CoinMarketCap provided the latest 24 hour data, which showed that Binance Jersey had a daily trading volume of about $520,006. 

As far as trading pairs for BTC/EUR and BTC/GBP are concerned, they had volumes of $243,000 and $176,000, while other pairs had been trading under $100,000. As far as digital assets are concerned, it cannot be assumed that investors are in it for the long-term. This market hasn’t matured enough for people to have people believing in the primary objective of the asset. Most people enter this space to trade, make money and then cut their losses where they possibly can. Therefore, Binance may not willing to deal with any digital assets that are not making a significant contribution to its growth and so, it might delist these tokens.