Monero's Value Drops as Binance Announces Delisting Plans
Summary:
Monero (XMR), a major privacy-focused cryptocurrency, has experienced a significant value drop following Binance's announcement of its delisting from the platform. Binance plans to delist Monero alongside Aragon (ANT), Multichain (MULTI), and Vai (VAI) on February 20, 2024. The decision has led to all Monero-related trading pairs being removed, and withdrawal of the coin will no longer be supported after May 20, 2024. Binance's decision has prompted a sharp decline in the value of Monero, affecting its standing in the crypto market.
The privacy-centric digital coin, Monero (XMR), has seen its value plummet to its lowest point in several months. This sharp depreciation has been attributed to an announcement from Binance, the major cryptocurrency exchange, stating that it will soon delist XMR from its platform. Monero, in addition to Aragon (ANT), Multichain (MULTI) and Vai (VAI), is set for removal on February 20, 2024, according to the notice dated February 6.
Consequently, Binance plans to eliminate all four of the trading pairs associated with Monero, which include the pairs for Bitcoin (BTC), Ether (ETH), Tether (USDT) and Binance’s own currency, known as Binance Coin (BNB). Once the trading halts for each respective pair, all pending trades will automatically be cancelled, the exchange has pointed out. Furthermore, after May 20, 2024, withdrawal of these digital tokens will not be supported.
Even though the delisted Monero currency might be exchangeable for stablecoins for the users following May 21, Binance’s communication has indicated that such conversion ‘could not be promised’. It also pointed out that the users would be informed ahead of any such conversion, following which the equivalent amount in stablecoins would be credited to their individual Binance accounts.
Several considerations led to Binance's decision to delist XMR, including promoting a robust and enduring crypto ecosystem and ill-suited or fraudulent activities or carelessness. They also highlighted the necessity for regular due diligence.
Binance's announcement caused an immediate drop in the value of Monero. Data by TradingView indicates that the cryptocurrency plunged by approximately 19% to $136 a piece within just a few hours. As of the time of reporting, XMR was traded for $140.30, down from the peak, but slightly recovered from the recent low. Monero prices have not been this low since September 2023.
It is not only Binance that has chosen to remove Monero. OKX, another cryptocurrency exchange, announced at the end of 2023 that it will delist Monero as well as Zcash (ZEC), another privacy-focused coin, effective from January 5, 2024. Binance had previously plotted to remove all privacy coins from its lists in nations such as France and Italy back in May 2023, but decided against it in June 2023.
A few suggest that this delisting will spell bad news not only for Monero, but also for Binance.
Facing scrutiny from regulators worldwide, Binance's struggles persist despite the former CEO, Changpeng Zhao, admitting to a U.S. court to breaking anti-money laundering and sanction regulations. Recent developments have seen Binance.US being barred from conducting its business in Florida and Alaska. Scheduled to face sentencing on February 23, 2024 in the United States, Zhao, who was denied permission to return to his home in the UAE, may serve up to 18 months in jail.
Published At
2/6/2024 2:32:17 PM
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