The privacy-centric digital currency Monero has encountered a significant price drop following the news that Binance, a leading cryptocurrency exchange, will cease listing the coin. The slated removal, set for February 20, 2024, also affects other tokens such as Aragon, Multichain, and Vai. This development has led Monero to plunge to a recent low.
Delisting Decision Causes Immediate Impact
Binance’s official statement clarified that post-delisting, all related trading orders will be canceled. Furthermore, the exchange will not support token withdrawals after May 20, 2024. Binance has proposed converting the delisted Monero into stablecoins, though it has not guaranteed this service. Details about the potential conversions will be communicated to the affected users.
The exchange’s decision to remove Monero from its platform was influenced by multiple considerations, including the token’s alignment with a sustainable crypto environment and Binance’s regular risk assessments, which factor in ethical and legal compliance.
Monero’s Market Price Plummets
Monero’s value took a hit immediately after the delisting announcement, plummeting by 27% to a trading level of $119. Previously, in mid-2023, Binance had planned to delist all privacy coins in certain European countries but backtracked on that decision a month later.
Wider Implications of the Delisting Move
The delisting has prompted varying reactions, with some viewing it as an indicator of Binance’s own challenges. Cryptocurrency investor John Brown voiced concerns that this event might reflect negatively on Binance’s standing. The exchange is currently grappling with regulatory scrutiny following the admission of guilt by its former CEO, Changpeng Zhao, for breaching anti-money laundering and sanctions laws in the United States. With Binance.US being barred from operations in Florida and Alaska, and Zhao’s sentencing anticipated on February 23, 2024, the repercussions for Binance continue to unfold.
