In the world of cryptocurrency economy, delisting means the removal of a digital asset from the exchange list. The reasons may include low popularity or a tiny volume of trade operations. In such cases, the trading pairs of the asset are removed.
Though the asset owners are still capable of trading it at decentralized exchanges or via over-the-counter trading (OTC), the activity will be ceased. Therefore, the coins left in the wallet may become useless. The user won’t be able to send them to a different wallet or change them to another digital asset.
What to do if the delisting is expected?
Even when the asset is listed, there are no official guarantees that it can somehow avoid delisting. However, it’s not done out of the blue. If there are visible and clear signs of the inevitable asset descending, the administration of the trading platform or exchange usually notifies the investors about the potential delisting in advance.
It is highly not recommended to buy the asset after such notification. Even though this information is published to protect investors from losses, its existence signals low liquidity and asset collapse. However, the asset’s owner will be able to withdraw it sometime after the delisting. Not for much, of course.
All in all, the best advice is to avoid owning the delisted asset. In order to do that, it is vital to assess the risks. If there is a tendency for the asset delisting, we recommend getting rid of it as soon as possible.
Abex is working to make the listing process of cryptocurrency or tokens effortless. The company develops market-making services to provide liquidity on a defined cryptocurrency by submitting both BID and ASK limit orders on a crypto exchange. Do you want to know more? Contact us!