Binance plans to remove several crypto assets from its exchange, in order to uphold its current statedly-high standards.
Binance due diligence
As far as reasoning goes, the exchange explained it’s due to a perpetual evaluation of all currently-listed projects. Binance has a set level of expectations for each asset it hosts. “When a coin or token no longer meets this standard, or the industry changes, we conduct a more in-depth review and potentially delist it. We believe this best protects all of our users,” the cryptocurrency exchange said in the announcement.
Some of the aspects Binance takes into consideration prior to extracting assets include:
- Commitment of team to project
- Level and quality of development activity
- Network / smart contract stability
- Level of public communication
- Responsiveness to our periodic due diligence requests
- Evidence of unethical / fraudulent conduct
- Contribution to a healthy and sustainable crypto ecosystem”
Binance examined the five crypto assets and deemed them for eviction from its platform. All SUB, SALT, CLOAK, MOD and WINGS trading will be terminated on February 22, 2019 at 10 am UTC.
The exchange has also specifically said that it will pull all trade orders following each pair’s trading stoppage. “To view your assets after trading ceases, please ensure you have not selected ‘Hide small assets’ in your Funds page,” an official statement added. Users can also still withdraw the specified assets from Binance until May 22, 2019, at 10 am UTC.
The cause for removal
Crypto YouTuber Rob Paone, aka CryptoBobby, had a few insights on the situation in his video highlighting the news. In general, Paone said a lack of trading volume might be a reason for these delistings.
Speaking on Substratum, however, he showed a lack of surprise regarding the asset’s removal. “Substratum came out and they were talking about a bunch of different things with trading their treasury balance, and the CEO had talked in a conference before about pump and dump groups. All types of stuff that just gives me the heebie-jeebies,” Paone said.
Back in December 2018, Substratum’s CEO Justin Tabb explained in a YouTube video that the project cashed out multiple ethereum positions (from its war chest of funds) based on market price forecasts.
Continuing to explain Substratum’s path moving forward (which statedly was included in its white paper), Tabb said:
We are going to not cash-in, but begin basically attempting to trade up so that we can further our position as long as possible. Obviously, this bear market is hard on everybody […] We’re taking advantage of the trader that we have in full-time. And we are going to be actively trading a portion of the ethereum so that we can trade up, basically. So we can sell at the top of the bands and buy at the bottom of the bands.”
As logically expected, most of the mentioned assets have seen a considerable fall in price, likely associated with the news. According to CoinMarketCap at the time of this writing, SUB has fallen 30% over the last 24 hours. Furthermore, CLOAK has declined by about 24%, and MOD is down almost 32%.