Why Do Some Cryptocurrencies Pump in Price When They're Being Delisted from Exchanges?

When a cryptocurrency is being delisted from an exchange (removed from trading), you’d think its price would drop, right? Surprisingly, some coins actually

When a cryptocurrency is being delisted from an exchange, it means that the coin will no longer be available to trade on that particular platform. This can happen for a variety of reasons, such as low trading volume, regulatory concerns, or exchange policy changes.

One might expect that the price of a coin would drop significantly when it is being delisted. After all, less availability should equal less demand. However, in some cases, the opposite actually occurs. Some coins actually experience a brief pump in price during these announcements. Let’s break down why this happens in simple terms.

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People Want What They Think Will Be Scarce

Some traders operate under the belief that once a coin is removed from a big exchange, it’ll be harder to get. This scarcity mentality makes the coin feel more “rare,” so they rush to buy it before it disappears. The extra demand can push the price up temporarily.

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Loyal Fans Step In

Coins often have dedicated communities who don’t want to see their favorite project fail. When a coin gets delisted, they might band together to buy more of it. This is done to show support or to try and grab attention, causing the price to rise.

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Buying Cheap to Sell Elsewhere

Even if a coin gets delisted on one exchange, it might still be traded on smaller platforms. Some traders buy the coin cheaply before the delisting happens, planning to sell it at a higher price on other exchanges. This strategy can lead to a quick price spike.

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Everyone Wants a Quick Profit (FOMO)

When a delisting announcement grabs attention, some traders jump in just because they see others buying. This “fear of missing out” (FOMO) drives prices even higher, despite there being no real reason behind the hype.

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Market Manipulation by Big Players

In some cases, large investors (known as “whales”) might use the chaos to their advantage. They pump the price artificially by buying large amounts, hoping to sell at a higher price before it all crashes.

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Last-Minute Rush Before Liquidity Drops

Once a coin is delisted, it becomes harder to trade because fewer people have access to it. This makes it less “liquid.” Some traders want to buy the coin while it’s still easy to trade, creating a short-lived “last chance” rally.

Be Careful with Delisting Pumps

While these pumps might look exciting, they’re very risky. Here’s why:

Prices Can Crash Fast: As mentioned, what goes up quickly can often come down even faster.

Hard to Sell: After delisting, there may not be many buyers left who are interested in the coin.

No Real Value: The price usually isn’t based on anything real about the coin. It’s mostly driven by hype.

Conclusion

Coins pumping during delisting is more about emotions, speculation, and big players than actual value. It’s like a firework—bright for a moment, but it doesn’t last. If you’re thinking about trading during these times, make sure you understand the risks.

Always research and think before you act!

#GFT/USDT #REN #IRIS