Why Bittrex is Removing 82 Cryptocurrencies from Its Exchange
March 20 2018 - 11:50AM
InvestorsHub NewsWire
Bitcoin Global News (BGN)
March 20, 2018 -- ADVFN Crypto NewsWire -- U.S. based
cryptocurrency exchange Bittrex has announced that it will delist
82 tokens on its trading platform, including BITS, BITZ, CRBIT,
CRYPT, FC2, GEMZ, and METAL. Most of the altcoins being removed
have a bad combination of low demand and low liquidity.
Bittrex said in a statement that, “Occasionally, there are
circumstances that lead Bittrex to remove a coin’s wallet or market
from the Bittrex Exchange. These actions are taken to ensure
customers have access to digital tokens that continue to meet our
strict coin listing criteria and have a properly functioning
blockchain and wallet.”
Bittrex instructed holders of the affected cryptocurrencies to
transfer the coins to other wallets or face forfeiture of the
coins: “Once these wallets are removed, we will no longer be able
to recover these coins. Users must withdraw their coins before
March 30, 2018, in order to keep them.”
Though it is common for an exchange to delist coins that are not
doing well, with a majority of altcoin projects are abandoned
within 6 months of being created anyway, the mass action by Bittrex
is especially dramatic. The action is probably partly intended to
help Bittrex avoid undue attention from the United States
Securities and Exchange Commission’s (SEC). Lack of liquidity can
lead to price manipulation (wash trading and artificial volume
inflation), of which many exchanges are guilty, and for which the
SEC is now watching. Expect other U.S. exchanges to also soon
delist a lot of low liquidity altcoins for the same reason.
Bittrex used to be one of the leading altcoin exchanges in the
world. It added several dozen new currencies since November 2017.
Some of those coins have since suffered low trading volumes or even
zero trading volume in the case of irreparably broken blockchains.
Among the list of 82 currencies to be delisted are 26 currencies
with severe blockchain issues. Altcoins with non-working
blockchains cannot be withdrawn because the blockchain is either
has no network nodes left to receive and broadcast transfers or the
remaining network is too slow to process transactions.
With Bittrex’s trend of frequently adding many new altcoins to
its exchange now reversed, lesser-known cryptocurrencies may end up
“stuck” on smaller exchanges.
By: BGN Editorial Staff
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