Last month, Binance, the world's largest crypto exchange, announced that it would delist the token BEAM effective Jan. 26. The price of the token fell 30% after Binance's announcement, and other exchanges including Pionex have followed suit and announced that they are delisting BEAM. Although Binance did not specifically say what factors contributed to its decision to delist the token, the criteria it considers when delisting a digital asset include "stability and safety of network from attacks," "trading volume and liquidity," and "contribution to a healthy and sustainable crypto ecosystem."
Delisting a coin can protect users' investments from high risk or fraudulent activities, CoinSwitch reported.
According to a Jan. 18 press release, Binance announced that in the interest of protecting its users, it periodically reviews all digital assets it lists to ensure that each one continues to meet its requirements. After conducting its most recent review, Binance determined that it would delist BEAM (trading pair BEAM/USDT) on Jan. 26. Binance users will be able to continue to withdraw BEAM until April 27. The Binance Team said they believe delisting the token is in the best interest of continuing to build a sustainable, transparent crypto ecosystem.
Binance considers multiple factors when determining whether to delist an asset, including the status of its development, how much the token's issuer communicates with the public, how responsive the token's issuer is to Binance's periodic due diligence requests, any evidence of negligence or fraudulent activity, and whether the token is contributing "to a healthy and sustainable crypto ecosystem."
"Unfortunately Binance has made the decision to delist Beam. Despite this, Beam continues to build for the future, one with privacy and decentralization at its core," BeamPrivacy wrote in a Jan. 19 Twitter post.
Twenty-four hours after Binance's announcement, the price of BEAM had dropped 30%, The News Crypto reported, citing data collected by CoinMarketCap. At that time, BEAM was ranked 691st by market value.
Pionex, a crypto exchange with built-in trading bots, announced one week after Binance that it would also delist the BEAM token.
Binance currently lists 353 coins and 1394 trading pairs, according to Coin Gecko.
