What is Delist, What Does It Mean?

Delist means to exclude from the list. The term delist is used to remove an asset on a crypto currency exchange from the process. A financial asset can be delisted from the platforms on which it is listed for many reasons.

Reasons such as the existence of any legal process, having a systematically low volume and not providing any benefit to the market may lead to the delisting of financial assets.

When traditional exchanges or cryptocurrency trading platforms detect that the costs of the asset they list exceed the benefits it brings, they take the delist decision.

Cryptocurrencies that cannot reach their old prices after excessive price fluctuations can create distrust. This causes that crypto asset to be evaluated less by users in the trading processes and the volume remains low. In such cases, it may be decided to delist the crypto asset by the platforms on which it is located.

What Do Coins to Delist Mean?

Delist, which means delisting, is the removal of an asset from the stock market. This event occurs as a result of no longer meeting the listing needs provided by the exchange. However, there must be many needs for an exchange and asset to be delisted. Then the delisting process is carried out. This condition is called delisting.

In order for an entity to be delisted, it is necessary to be included in some factors. Chief among these is the ‘quality and level of development activity’. Evidence of unethical or fraudulent behavior comes from whether the project contributes to a sustainable blockchain and cryptocurrency ecosystem, among other reasons that the exchange considers doing business with the project unacceptable or risky.

What Happens If It’s a Delist?

If the coin is delisted, it means that it will be closed to the processes and will not be listed by the exchange where it is processed.

This process is not done quickly so as not to waste the investors. It spreads as long as the coin is delisted. The coins to be delisted are definitely announced by the relevant exchange. The coin, which is informed that it will be delisted, can be withdrawn to a different platform or cold wallet where it is processed.

A delisted coin on one exchange does not mean that it will be delisted on other exchanges. It is related to the stock market that made this decision. Exchanges can maintain their financial existence with the committees they receive from the buy and sell processes. If a coin has a low transaction volume in the stock market, the committee income from this coin will also be low. Mostly, exchanges decide to delist coins with low transaction volume.

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