Delist means to exclude from the list. The delist expression is used to delist an asset on the cryptocurrency exchange. A financial asset can be delisted from the platforms on which it is listed for many reasons.
Reasons such as the existence of any legal process, having a low volume on a regular basis and not providing any benefit to the market may lead to the delisting of financial assets.
When traditional exchanges or cryptocurrency trading platforms detect that the costs of the asset they list exceed the benefits it brings, they take the delist decision.
Cryptocurrencies that cannot reach their old values after excessive price fluctuations can create distrust. This situation causes that crypto asset to be evaluated less by users in trading transactions and its volume remains low. In such cases, it may be decided to delist the crypto asset by the platforms on which it is located.
What Do Coins to Delist Mean?
Delist, meaning delisting, is the removal of an asset from the stock market. This event occurs as a result of no longer meeting the listing requirements provided by the exchange. However, there are many requirements for an exchange and asset to be delisted. Then it is removed from the list. This condition is called delisting.
For an asset to be delisted, some factors must be involved. Chief among these is the ‘quality and level of development activity’. Evidence of unethical or fraudulent behavior comes from whether the project contributes to a sustainable blockchain and cryptocurrency ecosystem, other reasons the exchange finds doing business with the project unacceptable or risky.
What Happens If It’s a Delist?
If the coin is delisted, it means that it will no longer be traded and listed by the exchange where it is traded.
This process is not done immediately in order not to harm the investors. It spreads as long as the coin is delisted. The coins to be delisted are definitely announced by the relevant exchange. The coin, which is informed that it will be delisted, can be withdrawn to a different platform or cold wallet where it is traded.
A delisted coin on one exchange does not mean that it will be delisted on other exchanges. It is related to the stock market that made this decision. Exchanges can maintain their financial existence with the commissions they receive from buy and sell transactions. If a coin has a low trading volume on the stock market, the commission income from this coin will also be low. Generally, exchanges decide to delist coins with low trading volume.
