Four lesser-known cryptocurrencies have plummeted by double digits over the past 24 hours, and this time the main culprit is not the broader market correction but Binance.
Meanwhile, the company has faced significant regulatory challenges that could negatively impact its users in the European Union (EU).
The Normal Reaction
The world’s largest crypto exchange conducted another review to verify that the coins listed on the platform meet the necessary standards and industry requirements. The checklist includes a variety of factors, such as the team’s commitment to the project, network stability, the level of development activity, adequate liquidity, and more.
As a result, Binance decided to terminate all services with Alchemix (ALCX), Ardor (ARDR), NFPrompt Token (NFP), and Marlin (POND). The actual delisting is scheduled for July 10, but the announcement has already caused a major decline for the affected tokens. They have all headed south by double digits, with NFP taking the biggest blow after posting a 21% daily plunge.
Reactions of that type shouldn’t come as a surprise, as losing backing from a market leader like Binance typically leads to thinner liquidity, reduced availability, and reputational damage.
Earlier this month, it delisted Contentos (COS), Dar Open Network (D), Highstreet (HIGH), and MOBOX (MBOX), which resulted in similar price drops. Prior to that, Automata (ATA), Harvest Finance (FARM), Enzyme (MLN), Phoenix (PHB), and Syscoin (SYS) fared even worse after an analogous effort from the exchange.
The Problems in Europe
Perhaps the biggest news surrounding Binance as of late concerns its issues with financial regulators in the European Union. Several days ago, the media outlet Reuters reported that the company might seek the necessary MiCA license from another country rather than Greece.
Binance officially addressed the issue by saying that it has withdrawn its application with the Hellenic Capital Market Commission (HCMC) in the southern European nation.
“When we are ready to announce that Member State, we will do so publicly. We made this decision after careful consideration of the status and the timeline of the process in Greece, with our users’ interests at the center,” it added.
The exchange’s CEO Richard Teng stated that it remains committed to securing a MiCA authorization in the coming months, while “providing clarity, minimizing disruption, and keeping users informed directly.” It is important to note that the deadline for obtaining such a license is July 1, and some of Binance’s competitors, including Kraken and Coinbase, have already met the requirements.
The company assured customers that their assets are safe and promised to unveil further details in due time. Meanwhile, users in other European nations such as Poland, Italy, Spain, and France have reportedly been told to withdraw their funds from the platform.
The post Binance Triggers a Brutal Collapse for 4 Altcoins: Here’s How appeared first on CryptoPotato.
