More and more exchanges has been delisting coins off their exchange. Just yesterday, we reported that KuCoin delisted 10 digital assets from their exchange. Today, Huobi announced that a list of 32 digital assets that the exchange might consider placing on the ‘ST’ risk category. ‘ST’ indicates that the digital asset is at risk of delisting by Huobi due to an infringement of the exchange’s token administration regulations. However, the 32 affected digital assets have for now only been issued a warning due to insufficient trading volume.
So why are exchanges delisting digital assets?
One of the biggest reasons why a lot of exchanges are cleaning up their listings is due to all the recent news on how certain exchanges are listing coins that do not meet the listing criteria, but the exchanges still lists them in exchange for a listing fee. In addition to that, there were recent news on how exchanges are actually water washed and that the volume numbers aren’t accurate. To give their users a peace of mind and a sense a security, exchanges decide to delist certain assets that may seem risky.
In order to promote the healthy development of the blockchain industry and protect the legitimate rights and interests of investors, Huobi regularly carries out comprehensive reviews of the listed tokens in accordance with the Token Administration Regulations of Huobi.
These are the coins that may get delisted on Huobi:
AppCoins (APPC), BitCapitalVendor (BCV), BnkToTheFuture (BFT), Datum (DAT),DigixDAO (DGO), EchoLink (EKO), Enigma (ENG), Everex (EVX), Gas (GAS), InvestDigital (IDT), Intelligent Investment Chain (IIC), Lunyr (LUN), MediShares (MDS), MyToken (MT), Metal (MTL), MedicalChain (MTN), Matryx (MTX), Ost (OST), Propy (PRO), QuantStamp (QSP), QunQun (QUN), Ripio Credit Network (RCN), Raiden Network Token (RDN), Rate3 (RTE), SALT, STN, Tierion (TNT), Utrust (UTK), WePower (WPR), XMax (XMX), ZJLT, Zilla (ZLA)
However, the team at the exchange stated that they will be reexamining the mentioned digital assets on the 26th of December this year. Those that meet Huobi’s Article 16 on handling digital assets, will have the ‘ST’ tag added on their trading pairs.
The ‘ST’ tag is given to tokens whose projects have been reviewed by Huobi and failed to fulfill the following conditions.
- Project teams fail to update the quarterly report on time or fail to update the semi-monthly reports for twice in succession as scheduled even fail to update it within 7 days after being notified to do so
- In 15 consecutive days, none of the trading pairs of the tokens has an average daily trading volume larger than $50,000 or other equivalent token
- It is considered necessary to mark “ST” through the comprehensive evaluation of inquiry, regular review, special investigation or on-site investigation
- Other situations identified as serious violations of the Regulations by Huobi.
The bigger picture
Whether you are an investor, trader, or owners of those company, there will be people that will feel unhappy about the delisting, however this is actually a good way for exchanges to retain loyal users and meet regulations.