Binance Delisting Tokens: Should You Invest in Them?
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What Happens When Binance Delists a Token?
When Binance delists a token, it can significantly reduce liquidity and restrict market access, making it essential for investors to act quickly. This year, Binance has delisted 21 assets on various dates. Here’s a quick breakdown:
For those eyeing these assets post-delisting, the question remains—is it a smart decision to invest? Delisted tokens often come with higher risks due to reduced liquidity and market access, but some argue they offer untapped growth potential.
In fact, some community members have started to tease Binance, sarcastically claiming that delisting gives tokens a better chance to grow. REEF, which surged by more than 600% post-delisting, seems to support that narrative. But is it really true?
Want to know whether you should dive in or avoid the hype? Keep reading to discover the full picture and make an informed choice!
*Note: We didn’t include stablecoins, such as VAI, in this report.
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The Immediate Aftermath of a Binance Delisting
When Binance delists a token, the short-term impact on its price is a wild gamble. Data shows it's a coin toss—tokens have a 50/50 chance of either gaining or losing value within the first month since they were officially removed from the platform. This unpredictability is a double-edged sword for those looking to jump in right after a Binance delisting.
Winners and Losers in the First Month
In the first month after delisting, 10 tokens saw gains, while another 10 suffered losses. The volatility is extreme:
- Top Gainer: REEF surged a jaw-dropping 601.48%, proving that a delisted token can still generate massive interest—probably from speculators or die-hard community support.
- Biggest Loser: On the flip side, DREP plummeted by 69.07%, showing the sharp downside risk when confidence fades.
Out of 20 tokens studied, 7 of them saw losses exceeding 20%, signaling that market panic often leads to steep sell-offs. But it’s not all doom and gloom—4 tokens experienced gains of more than 20%, indicating some optimism or a "rebound effect" for select tokens.
Long-Term Performance of Delisted Tokens: Data-Based Insights
The long-term outlook for delisted tokens isn’t exactly rosy. A report shows that 14 out of 20 tokens lost value since their delisting, highlighting the overall risk of holding such tokens for an extended period. Only 6 tokens managed to gain value, making the odds unfavorable.
Winners and Losers in the Long Term
- Top Performer: REEF shines with an astonishing +1336.7% gain since delisting, proving that some delisted tokens can still thrive if they maintain community support and market interest.
- Worst Performer: On the other hand, DREP lost -87.87% of its value, exemplifying the sharp declines many tokens face as liquidity dries up and confidence fades.
Overall, the long-term gain/loss ratio is 0.43:1, meaning for every token that gains, more than two suffer significant losses. Of the 20 tokens analyzed, 10 tokens experienced losses exceeding 20%, reinforcing the idea that delisting generally hurts token value over time.
Risk Management Tips: Navigating the Uncertainty
Investing in tokens right after a Binance delisting is a high-risk, high-reward game, but smart strategies can help you navigate the volatility:
- Timing is Key: Monitor price movements closely after delisting. Jumping in too early can expose you to steep declines, while waiting for stabilization might present better entry points.
- Market Sentiment: Gauge community support and overall market sentiment. Strong backing often keeps a token afloat.
- Research Fundamentals: Always dive deep into a project’s fundamentals. A solid use case and active development can signal potential for recovery.
With these strategies, you can better manage the uncertainty and minimize risk.
How to Sell Delisted Coins on Binance
For those wondering how to sell Binance delisted coins, the process varies depending on the token’s availability and Binance’s policy. Typically, you’ll need to withdraw your delisted coins to an external wallet or swap them on decentralized exchanges if liquidity dries up.
How to Withdraw Delisted Coins from Binance
If you've bought any of these assets before delisting, it's crucial to withdraw them promptly to avoid liquidity issues. Here's a quick guide:
- Log in to Binance: Access your account and head to the Funding page.
- Go to Wallets: Find the delisted token in your wallet under the "Wallets" section.
- Withdraw: Click Withdraw, then input your withdrawal address and the amount. Be sure to double-check the address to avoid loss of funds.
- Confirm Transaction: Confirm the withdrawal and wait for blockchain confirmation.
- Check History: Verify in your transaction history that the withdrawal is successful.
- Customer Support: If issues arise, contact Binance's customer support for assistance.
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Should You Invest in Tokens Right After Binance Delisting?
Investing in delisted tokens is highly speculative. While outliers like REEF can yield significant short-term gains, the majority of tokens—like DREP—experience declines. If you're willing to take on high risk for potential rewards, it may be worth it. Otherwise, proceed with caution.
