Delisting is a word that refers complete removal of cryptocurrencies from a trading platform. Delisting can be done voluntarily by project managers and can be done for a variety of reasons, such as a project being discontinued or having low market volumes. The most common reason for delisting is that the trading platform on which the cryptocurrency resides does not meet the listing standards. Delisting can be done by the project managers or the platform.
Here are some of the factors that may cause a cryptocurrency trading platform to delist an asset:
- The project does not meet the overall team commitment
- Decreased quality and level of development
- Problems with project networks or smart contracts
- Failure to respond to due diligence requests from a trading platform
- Unethical behaviors
- Unsustainable project
If the project cannot meet some of the quotes, it may be delisted by the platform. Once any cryptocurrency is removed from the trading platform, the asset cannot be traded.
When cryptocurrencies are removed from a trading platform, all trading pairs are removed. The cryptocurrency can be traded on other platforms, but its activity is completely terminated on the issued trading platform. Holders of delisted cryptocurrencies are left open for a set period of time so that their investments can be withdrawn by users.
How Does Delisting Work?
For a company to be listed on platforms, it must meet standards so-called 'listing standards'. Each platform has its own rules and regulations. Delisting does not happen in a day. The company is warned and given time to meet the standards. If the company still does not meet the standards set by the platform after the warnings, the company is removed from the list. The most obvious standard is price.
Voluntary delisting is up to the company. If a company decides that it does not want to operate, it should share this with its shareholders. For the company to be delisted, it must obtain approval from the platform and provide a statement outlining why. To be delisted, the company must buy a certain percentage of the total outstanding shares. To be delisted, the company must buy back a certain percentage of the total outstanding shares. A tender process for the buyback of shares takes place. The company pays until it is delisted.
What Is Delisted Product?
A delist product is an asset that has been previously removed from platforms. Operations and listings of assets are stopped. These assets cannot be exchanged with other cryptocurrencies. The delist product is closed to execution until it is re-added to the platform. Delist product can be transferred to platforms and wallets where it is still traded.
Delisting an asset or company does not mean that the asset or company cannot be re-listed on platforms. The asset or company in question can be re-listed as soon as it meets the conditions of the platform.
Why Are Cryptocurrencies 'Delisted'?
Each platform has requirements determined by development activities and quality. Cryptocurrencies that do not meet the requirements are defined as cryptocurrencies that will be delisted. Cryptocurrencies that do not benefit the ecosystem they are in, are delisted.
There is a waiting period for delisted cryptocurrencies. After the decision to be delisted, transactions with cryptocurrencies are blocked for a certain period of time. This is to prevent damage to investors. During this period, investors can transfer their cryptocurrencies to another platform.
The cryptocurrencies to be delisted are announced regularly on the platforms. The delisting process is carried out over a certain period of time. After the cryptocurrency to be delisted from the list is announced, the transaction is closed. After investors withdraw their assets, cryptocurrencies are delisted from the platforms.
What Happens to Delisted Assets and Cryptocurrencies?
The delisting process is a process that is carried out independently of the platforms where cryptocurrencies are listed. In other words, when a cryptocurrency is delisted from any platform, it is not delisted from other platforms where it is listed. A cryptocurrency delisted from any platform can be transferred to another platform where it is listed.
