The world’s largest crypto exchange by daily trading volume may delist some low-volume coins from its platform. A crypto analyst and trader RookieXBT suggested this idea in a tweet.
In the tweet, RookieXBT said that Binance should delist all coins that “do less than 10 BTC of daily volume.” Interestingly, Binance CEO Changpeng Zhao agreed with him.
“I think it is a good idea. If you are on Binance and still have no volume, then…”
A report by CryptoPotato said that some users believe that the value of cryptocurrencies should not be tied to the volumes they generate on exchange platforms. The report further revealed that some traders hold their digital assets for a long time, not caring about the daily volume they generate.
However, if Binance delists a coin, it may lead to the decline of the cryptocurrency, considering the “Binance Effect.” As noted on the Binance Exchange Guide, The Binance Effect “is a phenomenon where the price of a coin jumps significantly after getting listed on Binance.”
In 2019, Binance delisted Bitcoin SV (BCHSV). According to the official announcement, Binance had reviewed BCHSV based on several factors. However, the coin did not meet the required standard to be listed on the exchange platform.
Following the announcement, Bitcoin Cash SV fell 10%.
Apart from Zhao’s tweet, there has been no official statement from Binance to delist low-volume coins.