What is delisting?

Delisting is the removal of cryptocurrencies from the list of available trading instruments on the exchange. After delisting, traders cannot see and make transactions with the delisted asset.

Why does it happen?

Nowadays, no cryptocurrency provider gives a guarantee to its customers that a token will be traded on its platform all the time. The more problematic the coin is, the higher the risk of delisting.

As a rule, crypto exchanges never block investors' access to an asset without reason. Most often, cryptocurrencies are delisted because their trading volumes have been extremely low for a long time on the platform.

A coin may also be delisted due to non-compliance with the requirements of the platform. If the administration of the platform sees security breaches or doubts the stability of the cryptocurrency network, such a token will go to the ban list.

The same can be said about crypto assets involved in scandals. Usually, large cryptocurrency exchanges value their reputation and do not want to spoil it by supporting projects that are suspected of scams or fraudulent schemes.

The most infamous example is BitConnect. When it turned out that this coin was connected with a high-yield investment program, a type of Ponzi scheme, several platforms delisted the coin at once.

What does coin delisting mean for investors?

The main risk is that the crypto asset in which traders invested their money will become unavailable after delisting. Speculators will not be able to transfer it to another wallet or exchange it for other tokens.

In order not to lose the funds and be able to react timely, crypto platforms try to notify traders in advance about future delisting. However, this does not always happen. Therefore, it is very important to constantly monitor the news about your assets.

If you learn that the project faces problems (violation of the law, conflicts of developers, or lack of liquidity) that can force the platform to delist the cryptocurrency, you should transfer the coin to your wallet or another platform.

Remember that the best way to protect yourself from the risk of delisting is to trade only on those platforms that carefully choose tokens before listing them. The IFXBIT platform is one of them. We thoroughly analyze coins before adding them to the list of available instruments.