Knowledge base

What Is Delisting?

Delisting is the removal of a cryptocurrency from the list of financial instruments available for trading on an exchange. After this procedure, traders can no longer see or engage in transactions with the delisted asset.

Why Can Delisting Occur?

Today, no cryptocurrency platform guarantees its clients that a particular token will remain on its platform indefinitely. The risk of delisting is higher for problematic coins.

Exchanges typically do not halt access to an asset without valid reasons. There are always objective factors. Delisting often affects cryptocurrencies that have seen low trading volumes on the platform for an extended period.

Another reason for an asset's exclusion from the list of instruments may be its failure to meet the platform's requirements. If the platform's administrators are dissatisfied with the security and stability of the cryptocurrency's network, the token is likely to be added to the ban list.

The same applies to assets involved in scandals. Major cryptocurrency exchanges value their reputation and avoid supporting projects suspected of scams or clearly fraudulent schemes.

A prominent example of this is the situation that occurred with the BitConnect token. When it was revealed that the business model of this project was a classic Ponzi scheme, several platforms delisted the coin.

What Are the Consequences of Delisting for Investors?

The main danger lies in the fact that after delisting, the asset in which a trader has invested becomes inaccessible. Investors cannot withdraw it to another wallet or exchange it for an available token.

To prevent users from losing their funds and allow them to react promptly, crypto platforms attempt to notify them in advance about the impending delisting. However, this does not always happen, so it is crucial to regularly monitor news related to your assets.

If you notice that a project is facing significant issues (violations of the law, internal developer conflicts, liquidity shortages) that may lead the platform to delist the cryptocurrency, do not delay in withdrawing the coin.

And remember: the best way to protect yourself from the risk of delisting is to trade only on platforms that responsibly evaluate new instruments before listing them. IFXBIT is an example of such a platform: all coins undergo thorough scrutiny before listing.