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Home » In 2023, more than 3,000 tokens were removed from exchanges

In 2023, more than 3,000 tokens were removed from exchanges

According to research by analytics firm Kaiko, around 3,445 tokens or trading pairs have been delisted from various cryptocurrency exchanges so far in 2023.

According to estimates by the company’s analysts, cryptocurrencies have been eliminated this year That is 15% more than in all of 2022and twice as much as in 2021.

The analysis adds that this month of October, two of the main platforms in the market, Coinbase and Binance, delisted more than 100 tokens from their lists. Eighty of these cryptoassets were delisted on Coinbase alone, “more than any other month this year and since at least 2021.” In total, this exchange eliminated 176 competitors in 2023, he says. a publication on Bloomberg.

OKX exchange is another exchange that has carried out the most eliminations, removing around 172 tokens from its platform this year.

2023 was the year in which most tokens were removed from exchanges. Source: Bloomberg.

There are several reasons that explain such a number of eliminations. One of the most important is that the tokens do not generate enough profits to stay on the list. influenced it the ongoing crypto winter that kept the prices of most cryptocurrencies low from mid-2022.

However, it is noticeable that the market crash did not lead to a decrease in the creation of new tokens, which continued to multiply despite the drop in exchange trading volume.

The proliferation of cryptoassets in recent years has led to some 1.8 million tokens will be listed on central exchanges and decentralized, according to Kaiko’s calculations. Many of these projects lay dormant for a long time, an indicator that they may not have been successful in a low liquidity environment.

On this subject, Binance explains that it normally carries out Regular assessments of digital assets to ensure they meet certain standards Quality.

For Keep them on the list and consider various factorsB. Project team engagement, trading volume, network stability, liquidity, public communication and development activity.

The Recent regulatory measures also contributed to this The report adds to the deletions and points to lawsuits filed by the US Securities and Exchange Commission (SEC) against Binance and Coinbase.

In legal complaints filed last June, the SEC classified about 19 tokens as unregistered securities. These include crypto assets such as Solana (SOL), MATIC, Cardano (AD), FIL (Filecoin), MANA (Decentraland) and others. Many exchanges They have stopped marketing these assets to avoid trouble with the supervisory authority.

Something similar happened in Europe earlier this year when Binance stopped supporting private cryptocurrencies in Spain and three other European Union countries. As reported by CriptoNoticias, the approval of the regulation for the crypto-active markets (MiCA) pushed the exchange’s decision to comply with the requirements of the new law.

The above explains why token elimination has continued in recent months despite the market recovery, with Bitcoin (BTC) and the vast majority of atcoins rising in price and recouping much of the losses suffered in 2022, according to analysts this trend may continue for the rest of the year.

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