The Announcement
Binance, a leading cryptocurrency exchange, has recently announced its decision to delist three crypto tokens: Serum (SRM), Sonm (SNM), and DFI.Money (YFII). This decision comes after these tokens failed to meet Binance’s rigorous quality standards. Starting August 22, at 03:00 UTC, Binance will halt deposits for all trading pairs linked to these tokens, including SNM/BTC, SNM/BUSD, SRM/BUSD, and YFII/USDT. Furthermore, services such as Binance Simple Earn, Binance Loans, Binance Pay, Binance Gift Card, and Binance Trading Bots will no longer support these tokens. While deposits will cease next week, Binance has generously provided an extended withdrawal window until November 22. After this deadline, any remaining delisted tokens may be converted into stablecoins.
The Reason Behind the Delisting
Binance’s decision to delist these tokens was not impulsive. The exchange conducts periodic assessments of digital assets to ensure they maintain the highest quality standards. These evaluations consider various factors, including the dedication of the project team, trading volume, network stability, liquidity, public communication, and development activity. Unfortunately, SRM, SNM, and YFII did not pass the latest review, leading to their impending delisting.
Market Reactions and Personal Insights
From my point of view, the market’s reaction to Binance’s announcement was swift and decisive. SRM, which was trading at $0.071 just moments before the announcement, saw a sharp 22% decline to $0.055. SNM experienced a staggering 82% drop from $0.2 to $0.05, and YFII fell by 21% from $725 to $574. These price drops were accompanied by a surge in trading volumes, with YFII, SNM, and SRM seeing increases of 584%, 2499%, and 455%, respectively. This suggests that investors are rapidly offloading these assets.
As I see it, while Binance’s decision may seem harsh to some, it underscores the exchange’s commitment to maintaining a high-quality trading environment for its users. On the flip side, for the projects behind these tokens, this delisting serves as a wake-up cal l to improve their standards and regain the trust of both exchanges and investors.
