Monero and Multichain Collapse as Binance Announces Delisting

Monero (XMR) and Multichain (MULTI faced a significant blow as Binance, one of the world’s leading cryptocurrency exchanges, announced their delisting alongside two other tokens. The decision, revealed on Feb. 6, sent shockwaves through the crypto market, prompting a swift decline in the value of both XMR and MULTI.

Binance, known for its rigorous evaluation processes to maintain the integrity and quality of listed assets, declared the removal of Aragon (ANT), Vai (VAI), Multichain (MULTI), and Monero (XMR) from its platform effective Feb. 20. This move underscores the exchange’s commitment to ensuring that all listed cryptocurrencies adhere to stringent standards, a process deemed essential for maintaining investor trust and market stability.

“When a coin or token no longer meets this standard or the industry changes, we conduct a more in-depth review and potentially delist it. We believe this best protects all our users.”

– Binance Announced.

As trading pairs involving XMR and MULTI face impending cessation, the immediate aftermath of Binance’s announcement witnessed a stark contrast in market reactions. While VAI and ANT exhibited minimal response, MULTI and XMR experienced significant declines, indicating the gravity of Binance’s decision on these specific assets.

According to data from CoinmarketCap, MultiChain (MULTI) witnessed a staggering 27% decrease in its value within 24 hours of the announcement, plummeting to $1.54. Trading volumes surged by nearly 190%, hinting at heightened activity likely driven by traders either offloading their holdings or transferring them elsewhere amid the impending delisting.

Monero (XMR) similarly reacted to the news with a notable 17% decline. At the time of reporting, XMR was trading at $137.77, reflecting the market’s immediate response to its impending removal from Binance. The token’s market capitalization also took a hit, dropping by a corresponding 27% to $22 million. Trading volumes for XMR also spiked significantly, registering a remarkable 77% increase to $102 million, underscoring the heightened activity surrounding the cryptocurrency following Binance’s announcement.

This recent delisting announcement by Binance adds to a series of similar actions taken by other exchanges in recent months. In December of the previous year, OKX announced the delisting of Monero (XMR) alongside ZCash (ZEC), citing reasons related to compliance and regulatory standards, stating  “not meeting its strict criteria.” Starting from December 27, 2023, the platform ceased accepting deposits in FSN, ZKS, CAPO, CVP, XMR, DASH, ZEC, and ZEN tokens. Users will be able to withdraw these cryptocurrencies until March 5, 2024.

While Binance’s decision may have initiated short-term volatility in the market, its commitment to maintaining stringent standards underscores the importance of regulatory compliance and risk mitigation within the rapidly evolving cryptocurrency ecosystem. As the industry continues to mature, such actions by leading exchanges are likely to shape the future landscape of cryptocurrency trading, emphasizing the need for transparency, compliance, and investor protection.