The cryptocurrency exchange king Binance recently made another round of cuts, delisting five more tokens from its trading platform. Two of the five tokens which got the boot had been previously in the top 100 cryptocurrencies by market cap.
The delisting announced on the Binance website includes Substratum (SUB), SALT (SALT), Modum (MOD), CloakCoin (CLOAK), and Wings (WINGS). As expected, the prices of these coins and tokens reacted quite negatively to the news, some losing upwards of 50 percent in a single day.
The actual delisting and cessation of trading on all trading pairs will take place on 2019/02/22 at 10:00 AM UTC.
Binance regularly reviews the assets listed on the exchange and judges their quality based on factors such as project development, network stability, and communication, among others. At the time of writing, Binance is the top-ranked cryptocurrency exchange by volume, and as such takes its reputation and quality control seriously.
By ‘trimming the fat’ so to speak, Binance is able to protect its reputation as the most trusted and secure exchange, while at the same time protecting its customers from making investments in faulty or perhaps fraudulent projects.
SALT is a platform that issues loans in fiat currencies which are collateralized by the customers’ cryptocurrency funds.
While SALT only lost about 20 percent in the aftermath of being delisted from Binance, the token saw a 99 percent loss from its all-time high of $20 at the end of 2017.
Today the token is trading slightly above $0.18 and is ranked 181st in terms of market cap, significantly lower than its all-time best of 42nd.
Substratum (SUB) is an open-source network which focuses on creating a decentralized and censorship-free internet. Users of the Substratum platform can allocate computing power to act as a service node and are rewarded for serving content in SUB tokens.
Just like SALT, SUB has seen a massive loss of over 99 percent from its all-time high of nearly $3 per token in early 2018. In the days following the delisting announcement, SUB lost 51 percent bringing it to rank 269 from an all-time best of 71.
Substratum was recently in a bit of hot water for openly announcing that it would be swing trading the Ethereum funds it raised during its initial coin offering (ICO) period. This news greatly upset investors who saw the strategy as financially irresponsible and reckless.
Dealt Bad Hands
The other three tokens and coins are a little less known when compared to SALT and Substratum. All three followed a similar pattern of making considerable gains during the explosive bull run at the tail-end of 2017. During the final quarter of 2017, the total cryptocurrency market cap ballooned from $120 billion to more than $800 billion.
2018, however, brought with it a prolonged and severe bear market in which most small and mid-cap ICOs and crypto projects lost more than 95 percent of the gains they made in the previous year.
Wings (WINGS) debuted in early 2017 and acts as a platform for the curation, adoption, and funding of different ICO projects. It is currently trading at $0.05, down 40 percent after Binance announced its delisting.
Modum (MOD) is an Internet of Things (IoT) supply chain automation solution which hit the market in October of 2017 when cryptocurrency prices started to boom across the board. MOD reached an all-time high of $11 per token, but is now trading at just $0.15.
CloakCoin is perhaps the most interesting out of the group because the project predates the others by three years. CLOAK is a privacy-focused coin which debuted all the way back in 2014, before a large majority of the general public had even heard the words ‘blockchain’ or ‘cryptocurrency.’
CLOAK’s market value grew steadily between 2015 and 2017 before the bull run carried the coin briefly to the $30 range. Today CLOAK is trading for $0.70 per coin — a price not seen in over a year and a half.These five projects that have been delisted from Binance are shining examples of the toll that the bear market took on ICOs in the past year. Click To Tweet
Do you agree with Binance’s decision to delist CLOAK, MOD, SALT, SUB, and WINGS? Which coins or tokens do you think deserve to get the axe next? Let us know your thoughts in the comments below!
Images courtesy of Shutterstock, CoinMarketCap.