In a surprising move, Binance, the leading cryptocurrency exchange in terms of trading volume, announced that it would be delisting two prominent digital assets, Monero (XMR) and Multichain (MULTI), by February 20. This decision sent shockwaves throughout the crypto community, as the values of both coins plummeted significantly following the news.
Once Binance made the announcement, the prices of XMR and MULTI experienced a steep drop, with their values declining by around 20% each. Monero hit a low point of $136, while Multichain dipped to $1.55. These substantial losses leave investors and traders questioning the future prospects of these cryptocurrencies.
Binance justified the delisting of XMR, MULTI, and other assets such as Aragon (ANT) and Vai (VAI) by stating that they no longer met the exchange’s listing criteria. However, the exchange did offer a glimmer of hope by mentioning the potential conversion of delisted tokens into stablecoins on behalf of users. Despite this assurance, the conversion is not guaranteed, leaving token holders uncertain about the fate of their investments.
The decision to delist Monero did not come as a shock to industry observers, especially considering the growing regulatory scrutiny surrounding privacy-focused coins. Monero, being the largest privacy-oriented blockchain network in terms of market capitalization, has drawn attention from regulators due to concerns about its potential misuse in illicit activities. Other major exchanges, including OKX, have already delisted Monero for similar reasons.
It is worth considering whether Binance’s delisting of Monero is part of its broader effort to comply with evolving regulatory standards. The crypto industry is currently facing increased scrutiny, and exchanges like Binance are under pressure to enforce stricter rules to combat money laundering and other illegal activities. By taking this proactive step, Binance may be attempting to align itself with regulatory requirements and establish itself as a responsible player in the market.
Multichain, a cross-chain protocol that facilitates asset and NFT bridging across multiple blockchains, has had a tumultuous journey. The protocol gained significant attention last year when $126 million worth of funds suddenly disappeared, leading to the Chinese authorities detaining its CEO. This incident, coupled with multiple user complaints about delayed transactions and locked funds, resulted in the cessation of Multichain’s operations. The announcement of its delisting from Binance further adds to the challenges faced by the project.
The delisting decision raises concerns regarding the future of the affected assets. XMR and MULTI now face reduced liquidity and trading opportunities, which could further dampen investor confidence. Additionally, the conversion of delisted tokens into stablecoins, as mentioned by Binance, holds no guarantees. The fate of token holders and their investments hangs in the balance, as they await further notifications from the exchange.
The delisting of Monero and Multichain by Binance has cast a shadow over the digital assets’ future. The significant drop in their values reflects the market’s reaction to this decision. While the delisting may be seen as an effort to comply with evolving regulatory standards in the case of Monero, the troubles faced by Multichain have underscored the challenges of maintaining user trust and operational stability. As the crypto industry grapples with growing regulatory pressure, investors must navigate this rapidly changing landscape with caution.