Binance recently delisted a couple of altcoins from its cryptocurrency trading platform. One of the reasons why Binance delisted these coins, it claimed, was that these coins did not meet the exchange’s standards. This decision by Binance faced a lot of criticism and created a misconception in the community. The CEO of Binance, Changpeng Zhao, addressed this issue in his latest Ask Me Anything [AMA] video.
The CEO said that he wanted to clear the air about the delisting of Salt, Substratum, Modum, Wings, and CloakCoin and the delisting of other coins in the future. CZ stated,
“Delisting has to be done… When we list projects we go for certain number of criteria and overtime certain projects might fall below their standards, when they do we have to delist them. The standard is pretty clear.”
Referring to the 2017 article, “Binance Listing Tips,” Zhao also asked people to check the criteria a project should maintain to remain listed. He further added that there were many reasons which are considered before a project is delisted, and one of them was to check whether the project had product years after the ICO, or not.
Touching on the insider information leak, CZ said,
“We don’t give early notices for delisting, we don’t give three warnings, because when we do that the project team will have much earlier notice of when they will get delisted and some of them might even short their own coins. We keep very tight control over the information flow.”
CZ continued, saying that prices of such coins don’t see huge movements before delisting, but only after delisting, implying that Binance was doing a good job of keeping the flow of information under control.
The CEO also advised the project team to maintain contact with Binance and keep the exchange updated about the progress of the project. He also mentioned that delisting hurt not just the project, but Binance as well.
A Twitter user @JBTheCryptoKing commented,
“You are awesome for doing this.
@cz_binance, appreciate you answering my questions and looking forward to trailing stop losses”
The post CEO Changpeng Zhao defends Binance’s recent delisting of altcoins appeared first on AMBCrypto.