On Monday, Binance, the largest cryptocurrency exchange globally, revealed it will stop supporting and delist four cryptocurrencies: Waves (WAVES), OMG Network (OMG), NEM (XEM), and Wrapped NXM (WNXM). This decision has led to significant price drops for these cryptocurrencies.

Binance’s Decision to Delist Four Cryptocurrencies

In a June 3 announcement, Binance stated it will halt all spot and margin trading for Waves, OMG Network, NEM, and Wrapped NXM. Trading for these cryptocurrencies will end at 03:00 UTC on June 17. Binance explained that these tokens failed to meet their regular review standards and industry criteria.

“When a coin or token no longer meets our standards or the industry changes, we conduct a deeper review and may delist it. We prioritize providing the best services and protections for our users while adapting to the evolving market,” Binance explained.

The exchange also noted that users must withdraw these tokens by September 17, as it will fully stop supporting them. Before the delisting, Binance will remove these tokens from Binance Simple Earn, Binance Auto-Invest, and Binance Loans.

Factors Leading to Binance’s Delisting Decisions

Binance regularly reviews the cryptocurrencies listed on its platform to ensure they meet high standards and industry requirements. The review considers various factors such as the development team’s dedication, activity levels, trading volume and liquidity, network stability and security, smart contract reliability, public communication, response to due diligence, ethical behavior, regulatory compliance, and contributions to the crypto ecosystem.

Market Reaction to the Announcement

Following Binance's announcement, the price of WAVES dropped by over 25%, now trading at $1.77. The trading volume surged by more than 900% as traders adjusted their positions quickly. Similarly, the prices of OMG, WNXM, and XEM fell by 25%, 3%, and 29%, respectively, within hours.

In conclusion, Binance’s decision to delist these four cryptocurrencies has caused significant market movements. The exchange remains committed to maintaining high standards for the tokens it supports, ensuring safety and reliability for its users.