Binance Delists Six Altcoins Including PowerPool (CVP) and Reef (REEF), Promising to Convert Delisted Tokens into USDC

Binance, one of the world's largest crypto exchanges, has announced the delisting of six altcoins. The impacted altcoins—PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX)—experienced sharp declines in value, each dropping by double digits immediately after the announcement.

Binance, a leading cryptocurrency exchange, has announced the upcoming delisting of six altcoins from its platform. The impacted altcoins, namely PowerPool (CVP), Ellipsis (EPX), ForTube (FORT), Loom Network (LOOM), Reef (REEF), and Voyager Token (VGX), experienced an immediate and significant decline in value following the announcement.

According to historical trends, Binance's announcements regarding altcoin listings and delistings have had a substantial impact on their prices. In this case, the announcement led to a sharp drop in the value of the affected altcoins.

Users are advised to take necessary actions prior to the Binance altcoin delisting. As of August 26, 2024, at 03:00 UTC, Binance will halt all spot trading pairs for these tokens.

The affected pairs include CVP/USDT, EPX/USDT, FORT/BTC, FORT/USDT, LOOM/BTC, LOEM/TRY, LOOM/USDT, REEF/TRY, REEF/USDT, and VGX/USDT. After halting these pairs, the exchange will automatically cancel all outstanding trade orders.

Binance, as part of its periodic reviews, assesses various factors such as team dedication, development activity quality, trading volume, liquidity, network safety, stability, public communication, response to due diligence requests, and adherence to new regulatory mandates when evaluating a coin or token.

"When a coin or token no longer meets these standards or the industry landscape shifts, we conduct a more thorough review and may decide to delist it," Binance stated.

The price impact was both immediate and substantial, with CVP dropping by nearly 14%, EPX by 22%, FORT by almost 20%, LOOM by nearly 13%, REEF by over 20%, and VGX by around 18%. These sharp declines highlight the sensitivity of the market to exchange delistings, which often serve as a proxy for a token's perceived viability.

After August 27, 2024, Binance will no longer credit any deposits of these tokens. However, the exchange will continue to support the withdrawal of these tokens until November 26, 2024.

Later on, Binance may convert these tokens into stablecoins, but this is not guaranteed and will be subject to a separate notice.

In a related development, Binance has also notified its users regarding the upcoming automatic conversion of 15 previously delisted altcoins into the USDC stablecoin. This conversion will be based on users' holdings as recorded at the snapshot time, which is September 2, 2024, 00:00 UTC. The move aims to provide users with a stable value store after these tokens are removed from active trading.

These altcoins include: