Monero price drops 25% after Binance delisting
Binance announced that it will cease listing the Monero (XMR) privacy token, along with three other tokens – Aragon (ANT), Multichain (MULTI), and Vai (VAI) – effective February 20. The crypto giant said the decision to delist these tokens stems from their failure to meet its standards.
Following this announcement, Monero price plummeted by more than 23% to $139.96. Users holding these tokens on Binance have until May 20 to withdraw them, after which withdrawals will no longer be supported.
Privacy coins like Monero are designed to preserve user anonymity by obscuring transaction details, which has made them less popular with regulators and law enforcement agencies. Their unique features make it challenging to trace the flow of money, offering enhanced privacy for financial activities.
Earlier in January, Binance tagged ANT, FIRO, KP3R, MDX, MOB, REEF, VAI, XMR, ZEC, and ZEN due to their higher volatility and risks.
This move is said to be part of Binance’s effort to maintain the integrity of its trading platform and protect its users. The ‘Monitoring Tag’ indicates that these tokens are under close scrutiny, with regular reviews to assess their performance and compliance with Binance’s listing criteria.
Binance will conduct periodic reviews of these projects, considering various factors. The list includes the team’s commitment, development activity level and quality, trading volume, network security, smart contract stability, public communication, response to due diligence, ethical conduct, and overall contribution to a sustainable crypto ecosystem.
Moreover, Binance has introduced a new requirement for users interested in trading these tagged tokens. They must pass specific quizzes every 90 days to gain access to trading these assets on Binance Spot and/or Binance Margin platforms.
Binance has also delayed the launch of USDC-margined perpetual contracts for major cryptocurrencies like Bitcoin, Ethereum, Solana, BNB, and XRP, citing recent market volatility. This launch has been rescheduled from January 3 to January 4.
This development follows a similar move by another major exchange, OKX, which recently announced the delisting of several trading pairs involving coins such as ANT, XMR, ZEC, and ZEN.
OKX’s decision to remove these privacy coins also aligns with similar actions taken by other exchanges. For instance, Huobi announced plans to delist seven privacy-related coins in September 2022. Additionally, Binance initially planned to delist all privacy tokens in countries like France and Italy in May 2023, though it later reversed this decision.