- Bullish vs Bearish - 10%10%
- Hodl vs Rekkt - 5%5%
Binance just announced that it will delist MOD, SALT, SUB, WINGS and CLOAK on February 22nd. About a year ago coins like SALT and Wings were touted as the next big thing and hodl meme was everywhere. Fast forward a year later and these coins are about to get completely irrelevant.
This is not a huge surprise as declining volume and poor coin fundamentals no longer make it lucrative for established exchanges like Binance to support coins with significant question marks and potential legal issues. Exchanges are currently not making enough in trading fees to justify keeping coins with poor fundamentals. In addition, potential lawsuits against organizations that created these coins will further de-incentivize big exchanges to have these coins listed.
We expect Binance to continue delisting coins with poor fundamentals, lack of development updates and poor public communication. Other exchanges are surely to follow as the long term ramifications of poorly managed crypto currencies and lack of usability as well as development progress will deter exchanges from keeping these coins on their platform.
What This Means For Traders:
If you’ve been bag holding some coins with less than stellar fundamentals, you should consider selling them off. Crypto market has reached a point where it is purging itself of low quality of coins but is also doing so at an accelerated rate as a result of infrastructure based businesses, such as exchanges, looking out for their own long term sustainability.
It is no doubt painful to sell a coin that is down 95% YoY but if you have significant doubts about a particular coin’s long term viability, still consider saving that remaining 5%.