Yesterday, crypto exchange Binance announced that it would be delisting four digital tokens: Bytecoin, ChatCoin, Iconomi, and Triggers. On Binance's official site, the exchange wrote:
"In order to protect our users, the Binance team conducts comprehensive and periodic reviews of each digital asset listed on our platform to ensure projects maintain a high standard of quality. In the event a coin or token falls below this quality standard, it will be subject to further review and potentially delisted."
Friday will be the last day the four tokens will be available for trade. However, clients have until November 12 to withdraw them from the exchange.
Binance did not provide the specific reasons these four coins no longer meet its "quality standard," but it did provide the criteria it uses when considering delisting:
- "Commitment of team to project"
- "Quality and level of development activity"
- "Network / smart contract stability"
- "Level of public communication and activity"
- "Responsiveness to our periodic due diligence"
- "Evidence of unethical / fraudulent conduct"
- "Contribution to a healthy and sustainable crypto ecosystem"
After Binance announced the decision, the value of all four coins dropped. Triggers was the hardest hit, down 43 percent since Monday. Iconomi only lost seven percent of its value, while ByteCoin and ChatCoin lost 23 and 30 percent, respectively.
The delisting came only a day after Binance unveiled its new listing fee policy. Going forward, the exchange will not charge listing fees, but will instead take donations, which will be given to charity. The announcement stated, "This change will further push Binance's charity initiatives and increase the use of blockchain for the greater good."
The new charitable spirit on the exchange's part, as well as its renewed concern for providing ethical and high-quality tokens – notably missing when Binance initially listed ByteCoin, often called a scam – give the impression of a concerted PR effort on the part of the exchange.
It may not be a coincidence that last month Binance was referred to the New York Department of Financial Services because of possible violations of New York virtual currency regulations.