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Monero (XMR) has witnessed intense volatility, shedding 34% of its value, as leading exchange Binance announced a decision to halt all XMR trading pairs.
The exchange communicated this move in a recent statement on its official blog. Per the notification, Binance is delisting the $2.3 billion valued privacy-based token, XMR, alongside three other notable tokens.
The three other tokens include Multichain (MULTI), Aragon (ANT), and Vai (VAI). The four will no longer be tradable on the Binance spot platform starting February 20.
Reason Behind the Monero Delisting by Binance
Notably, Binance’s notification highlighted the regular review process applies to every digital asset listed on the platform. It conducts a comprehensive reassessment to fish out tokens that fall short of the expected standards.
Binance articulated that its review process for potential delisting involves assessing a range of factors pertaining to digital assets.
Specifically, these considerations encompass the team’s dedication to the project, the level and caliber of development activity, trading volume, and liquidity.
Additionally, it considers stability and security against potential attacks, smart contract reliability, and the extent of public communication.
Moreover, the responsiveness of the teams to periodic due diligence requests, evidence of unethical behavior, and negligence are integral components of the evaluation process.
Essentially, Monero’s XMR and the three others have failed to meet Binance’s expected standards. Consequently, XMR trading pairs of BNB, Bitcoin, Ethereum, and Tether (USDT) will all be removed from Binance.
Binance has expressed that the action is in the best interest of all users on the platform. Furthermore, the exchange noted that deposit attempts on any of the tokens after February 21 will not be honored.
In parallel, withdrawals of the tokens from Binance will not be feasible after May 20, 2024. Essentially, Binance stated it might automatically convert unwithdrawn delisted tokens into stablecoins after May 21.
Monero’s XMR Tanks 34%
Following this update from the prominent exchange, XMR has crashed 34% from a height of $166.51 to a low of $123.90. Per CoinMarketCap data, the asset experienced a more pronounced decline in the last few hours since the news surfaced.