According to data from Kaiko, privacy tokens face challenges in meeting listing standards on crypto exchanges amid regulatory pressures and liquidity is at an all-time low.
In a recent research report, analysts at Kaiko say market flux for privacy tokens including Monero (XMR), Zcash (ZEC), and DASH is increasing as cryptocurrency exchanges continue to delist these assets. It has become clear that sex has reached an all-time low. According to data, the privacy-focused token had just $5 million in liquidity last week after several trading pairs containing these assets were removed from OKX.
“Trade volumes have gradually increased since October, but remain well below 2021 levels.”
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Analysts at Kaiko noted that regulatory pressure over the past few years has led to an increasing number of privacy tokens being delisted by major platforms.
This contributed to further worsening the decline in liquidity in the cryptocurrency bear market. XMR and ZEC are currently at high risk of being delisted on Binance due to their low liquidity, Kaiko noted, adding that ZEC is “the most delisted privacy token in the past two years.” Analysts say this has led to market fragmentation, with XMR dominating large exchanges, while ZEC and DASH are mostly traded on smaller, unregulated exchanges. .
In early January, crypto.news reported that Binance expanded the scope of its monitoring tag by adding 10 additional tokens, including Monero (XMR) and Zcash (ZEC). The move comes after Binance admitted to a series of crimes in late 2023, including money laundering and non-compliance with Know Your Customer (KYC) regulations stipulated by the U.S. Securities and Exchange Commission (SEC). This was done in an effort to strengthen efforts. ).
Despite widespread delisting, not everyone in the crypto industry holds the same view. In September 2023, Ethereum co-founder Vitalik Buterin pointed out that centralized organizations like custodial exchanges are “fragile” and can be corrupted, and users should not rely on centralized providers. He emphasized that transactions should be possible directly on the Ethereum blockchain without any transaction.
