In December 2024, Binance, the world’s leading cryptocurrency exchange by trading volume, ramped up its efforts to maintain a high-quality and secure trading environment by delisting a number of tokens.
The exchange’s decisions come amid ongoing market uncertainty and regulatory pressure, signaling a more cautious approach as it prepares for the challenges of 2025.
With Bitcoin’s price falling below the $100K mark, investor confidence is low, and the overall market sentiment is one of caution. For Binance, ensuring that only the most reliable tokens remain on the platform is imperative as it seeks to maintain its reputation as a secure and trusted exchange.
Binance’s recent delistings: Stringent standards in play?
On December 6, Binance announced the removal of two spot trading pairs: NOT/BNB and RDNT/BTC. This followed the exchange’s routine process of periodically reviewing listed assets to ensure they meet stringent requirements for liquidity, trading volume, and network security.
Binance made it clear that such actions were necessary to protect its users and uphold the integrity of its platform, especially in times of market volatility.
Additionally, more tokens are set to be delisted on December 25, 2024. These included tokens such as Kaon (AKRO), Bluzelle (BLZ), and WazirX (WRX). While these tokens were removed from the platform’s main trading pairs, Binance clarified that they could still be traded with other pairs on the platform.
Other trading pairs to be removed from the exchange include ACE/BTC, ACM/TRY, BOME/BTC, DYM/BTC, MTL/TRY, PIXEL/BNB, PIXEL/FDUSD, QKC/BTC, RAD/BTC, REZ/FDUSD, TUSD/TRY, all on Dec 27.
In a statement, Binance emphasized its ongoing evaluation process for tokens listed on its platform. The exchange explained that it periodically reviews assets to ensure they align with its high standards. If a token fails to meet these standards or if industry dynamics change, Binance may decide to delist it.
Furthermore, Binance takes into account any evidence of unethical conduct or negligence related to the token in question. As regulatory requirements evolve, the exchange ensures that its listed assets comply with new legal standards to maintain a secure and trusted marketplace for its users.
The WazirX incident: Reasons for Binance to tread carefully
The delisting of WRX, WazirX’s native token, on December 25, 2024, was directly linked to the ongoing troubles at the Indian exchange. The Delhi High Court had, just days earlier on December 18, ordered a fresh investigation into WazirX, stemming from a significant hack in July 2024, which resulted in a $235 million loss in cryptocurrency.
The breach, attributed to a North Korean hacking group, raised significant concerns about the platform’s security measures and transparency.
Binance delisting wazirX WRX token, is the best thing.
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Coz few days back WRX the dead exchange token, all of a sudden started pumping 20 to 30%, like why anyone in their right mind would buy this token?🧐
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So nice of binance, to finally delist it, all exchanges should do it.🙌— Jay₿itcoins.ai⚡️ (@JayBitcoins) December 19, 2024
Despite a partial recovery of the stolen funds, 43% of customer assets remain unrecoverable. The court’s decision to mandate a renewed investigation into WazirX, particularly in light of allegations of financial irregularities, compounded the exchange’s already fragile position.
Binance, which has faced its own scrutiny in connection to WazirX in the past, confirmed that it no longer holds control over the exchange. Binance stated that WazirX is operated by Zanmai Labs, an entity under the jurisdiction of India’s Financial Intelligence Unit.
The Wazirx exchange token experienced a severe dump yesterday due to the news of its delisting from Binance exchange, and its price dropped by nearly 60%. But I don't think this token will disappear like FTT exchange. Was there a buying opportunity at this point? We'll see. 😉… pic.twitter.com/whEHSHs2ax
— Aboozar (@Aboozar_trader) December 19, 2024
Following the delisting, WRX experienced a dramatic 59% drop in value, signaling a loss of investor confidence in both the token and the exchange.
Binance Alpha mishap sees investors accrue big losses
Binance caused a stir when it posted a list of “alpha watchlist tokens” to one of its official Telegram channels. The post, which highlighted five early-stage crypto projects, triggered a sudden spike in the prices of the mentioned tokens. However, the exchange later clarified that the information was inaccurate, resulting in the tokens losing their newly gained value.
The post identified Wise Monkey (MONKY), Happy Cat (HAPPY), Rifampicin (RIF), Zircuit (ZRC), and ai16zeliza (ELIZA) as projects with “strong fundamentals” and “active communities.” Speculation quickly spread among traders that the Telegram group could be a fake attempt to manipulate the market.
As reported by Cryptopolitan, the post had originated from binance_web3_wallet_community, an official Binance channel. Following the clarification, the price of MONKY surged by 38% before plummeting by 22% when the false nature of the announcement was confirmed.
One trader suffered significant losses, buying 1.42 million ELIZA tokens at $0.1376, only to see the price fall after the correction was issued. The trader was forced to panic sell at $0.09567, with the remaining position liquidated at just $0.01157, resulting in a $102,000 loss within 12 minutes.
Binance’s Outlook for 2025: A Focus on High-Quality Assets
As Binance moves into 2025, its trading strategy appears centered around fostering a more curated and secure marketplace. Binance’s approach reflects a growing trend among exchanges to streamline their offerings in the face of growing regulatory scrutiny and evolving market conditions.
The exchange is expected to continue its practice of periodically reviewing all tokens listed on its platform, ensuring they meet standards like having a strong, committed project team, technological improvements, high levels of trading activity and liquidity, with a safe, stable network environment
Binance has also been under increased regulatory pressure in several jurisdictions, and staying ahead of new regulatory developments could be a priority moving forward. It will also likely expand its focus on the US, riding on President-elect Trump’s pro-crypto stance.
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