crypto exchanges

Liquidity Issues Pose Trouble for Coins on Crypto Exchanges

During the bull run, crypto exchanges across the world had added hundreds of cryptocurrencies to their platforms. But, now, with the crypto markets witnessing an extended bear trend, exchanges are considering the removal of these altcoins owing to liquidity issues.

Earlier this week, crypto markets were in the green, however, it doesn’t appear that the markets are taking any definitive direction anytime soon. Such volatility has not only resulted in a lack of interest from the Wall Street and layoffs by companies, but it is also leading to a number of altcoins being delisted from crypto exchanges.

This week two major crypto exchanges, Huobi and Kucoin, have put a slew of altcoins on notice for potential delisting.

Kucoin, which is the world’s 54th largest exchange in the world, has barred ten tokens from its platform as they could not meet specific requirements.

Kucoin places potential tokens on the verge of dismissal under the Special Treatment Rule. This Special Treatment Rule mandates review of the coins. Liquidity issues are one of the reasons that may lead to the delisting of a coin from the exchange.

Presently as much as ten coins are under Special Treatment on Kucoin, and they include Bitclave, Ethland, Bread, WePower, Mobius, and Bitcoin Gold.

While you can withdraw these coins, however, their deposit and trading are currently discontinued. If no further improvement is seen, then these coins will be delisted from Kucoin permanently. As per the company, such decisions are taken to provide users with the best experience.

At Huobi, which is the world’s third largest crypto exchange by trading volume, as many as 32 coins are on the verge of being delisted. Huobi’s recent announcement read as follows,

“In order to promote the healthy development of the blockchain industry and protect the legitimate rights and interests of investors, Huobi regularly carries out comprehensive reviews of the listed tokens in accordance with the Token Administration Regulations of Huobi.”