Bitcoin’s Comeback Sparks Delisting of Digital Tokens from Major Exchanges
The resurgence of Bitcoin has brought about a wave of delistings for numerous digital tokens on major exchanges like Coinbase and Binance this year. According to data from Kaiko, more than 3,445 tokens or trading pairs have either been delisted or rendered inactive, setting a record pace. Coinbase, in particular, removed 80 trading pairs in October, the highest number of delistings in any month this year.
Reasons Behind Delistings
The delistings are partly attributed to the US Securities and Exchange Commission (SEC) filing lawsuits against Coinbase and Binance in June. The SEC designated 19 tokens as unregistered securities, leading to their removal from exchanges. These regulatory actions have had a significant impact on the availability of certain tokens for trading.
Hot Take: Impact on Crypto Market
The increasing number of delistings highlights the regulatory challenges faced by the crypto market. This trend can impact token holders who may face difficulties in accessing liquidity and trading options. As exchanges continue to navigate regulatory requirements, it is crucial for investors to stay updated on token listings and be aware of potential risks associated with investing in digital assets.
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