Leading exchange Binance removed five coins from its platform last week, shocking project heads and holders alike. The news was delivered with no warning and resulted in over 20% drops on each coin. Now, the spokespeople for the projects have responded, and they are not happy.
CEO Stefan Kender stated via the CloakCoin website:
“The news on Friday about Cloak being delisted from Binance has emotionally shocked me. As CloakCoin’s project manager this is an even harder hit for me because I very strongly identify myself with the project. Binance is a reputable player in the crypto scene. This unsubstantiated and incomprehensible message tarnishes CloakCoin’s reputation in a negative way […] Looking back at the regular contact made with Team Binance previously, I hope for a detailed explanation regarding which of the points apply to CloakCoin.”
Modum stated via their Telegram channel:
“We are disappointed by the fact that we unfortunately have not heard back from Binance to date regarding a satisfactory reasoning for our delisting on the exchange, despite numerous attempts to contact their management and to understand their motivation.”
Wings commented on the decision on their blog:
“These news have saddened us, as WINGS has been listed since the early days of Binance. As all the required information by Binance was always provided in a timely manner. The delisting was a big surprise for us, since we have not received any notification about the pending delisting, hence had no chance to resolve any issues they may have found with the project. In fact, up to this very moment we have no information why Wings specifically was picked, despite our repeated inquiries to Binance.”
CEO Bill Sinclair said via the Salt blog:
“Binance’s announcement and action came as a surprise to SALT as we did not receive any information requests or opportunity to refute the inferences in Binance’s announcement. SALT adamantly objects to Binance’s announcement which provides the basis for which it delists a token but does not make any specific allegation against the list of companies, thus creating false negative implications.”
CEO Justin Tabb wrote a piece on the Substratum blog, stating:
“This decision came as a surprise, with no advance warning. We are terribly disappointed in the decision and their handling of the delisting. To be specific:
- We were not questioned regarding any issue(s) to make sure the issue(s) is factual before making this decision.
- We were not given an opportunity to clear up any real/perceived issue(s), such as a probationary status or deadline to fix.
- We were not given any conditions for relisting.”
Confusion and Anger
The common themes seem to be confusion at the delisting itself and anger of the lack of communication from Binance in the lead up to it. Indeed, unless Binance had strong reasons for delisting the tokens, such as legal wrongdoing, to not give at the very least some prior notice to the projects seems unnecessarily harsh. As the biggest exchange in the industry their opinions carry great weight, and a delisting can have a damaging effect on a project’s reputation.