Monero The digital currency known for its privacy features (CRYPTO: XMR) fell 37% in a day after Binance announced it would soon delist the cryptocurrency from its trading platform.
what happened: According to a statement from Binance on February 6th, Monero is aragon (cipher: ant), multi chain (Crypto: Multi), and Vai (CRYPTO: VAI) will be delisted from exchanges on February 20, 2024.
Enter to win $500 in stocks or crypto
Enter your email address to get Benzinga's Ultimate Morning Update, a free $30 gift card, and more.
As a result, Binance will suspend all trading pairs related to Monero. This includes pairing it with Monero. Bitcoin (Crypto: BTC), Ethereum (Crypto: ETH), tether (cipher: USDT), and binance coin (Code:BNB).
The announcement further detailed that after a trading halt, “all trading orders will be automatically deleted after the trading halt for each trading pair.” It also states that withdrawals of these tokens will no longer be supported after May 20, 2024.
After delisting, Binance may convert the removed XMR tokens into stablecoins for users, but this is not certain. “If applicable, a separate notification will be provided before the conversion and the stablecoin will be credited to the user's Binance account after the conversion,” Binance said in a statement.
The decision to remove XMR from Binance was influenced by several criteria, including the token's contribution to a robust and sustainable cryptocurrency ecosystem and concerns about unethical or fraudulent practices.
Binance also considered the token’s responsiveness to regular due diligence requests.
Free Report: How to Learn Options Trading Quickly
In this special report, you'll learn the 4 best options trading strategies, how to stay safe as a complete beginner, a 411% trading case study, and how to access two new winning options trades starting today. Learn.Request your free report here.
Also read: Standard Chartered expects Ethereum ETF approval by May 23rd, target price expected at $4,000
why is it important: After the delisting announcement, Monero's value fell sharply.
At 9:21 a.m. UTC, the price of XMR fell to $136 on Binance, recording a loss of nearly 19% in just a few hours, according to TradingView data.
Although XMR price has recovered slightly to $140.30 at the time of reporting, these numbers represent the lowest price since mid-September 2023.
Binance’s move to delist Monero is not an isolated incident.
In late 2023, cryptocurrency exchange OKX also announced its intention to delist Monero and another privacy-focused coin. Zcash (Code: ZEC), January 5, 2024.
Additionally, Binance previously planned to remove all privacy tokens in certain countries such as France and Italy in May 2023, but reversed this decision in June 2023.
Read next: Scaramucci aims to earn $170,000 in Bitcoin after halving, BlackRock CEO says 'rally has turned around'
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
