What Happens When An Asset Is Delisted?
As frequent crypto traders may already know, delisting of tokens is a possible occurrence on crypto exchanges and it is natural for users to have multiple questions, fears, and doubts, particularly so if they have invested significantly into a project that is soon to be delisted. As a first stop for quality crypto projects, MXC is committed in remaining relevant and providing a safe trading environment for our community. Thus, we have taken considerable efforts to evaluate projects and trading pairs.
What does it mean when an exchange delists your token?
When an asset gets delisted on an exchange, it means that all its trading pairs will be removed. In other words, the token can no longer be traded on that particular exchange. Having said that, the asset may still be tradable on other exchanges.
As a world-class digital asset trading platform, MXC is committed to creating a safe trading environment so that users can trade with an ease of mind. For this purpose, MXC tightens its supervision for the listed trading pairs on MXC Platform. Projects that are haphazardly operated or pose potential security hazard would first be given a warning. MXC has the right to hide or delist their trading pairs of project parties that continues to severely violate the MXC community’s regulations.
Before we move on, let’s first clarify the differences between hiding and delisting of an asset:
For the case of hiding, the hidden trading pair is unable to be displayed in the crypto-list or rise & fall list. As a result, though its trade will not be affected, traders have to search the pair before trading. If the project parties of the hidden tokens do not make effective improvement within the hidden period, MXC will proceed to delist their trading pairs at a proper time.
Information as to why tokens are delisted is explained in the following section.
Why are tokens delisted on an exchange?
There are several criteria which can lead to the delisting of a token/coin from an exchange.
1. Regarding Project and Team
To safeguard the interest of users, if any of the founder, co-founder, counselor or key team members of the project are found to deceive users, be involved in market-price manipulation or illegal conduct, MXC will launch an investigation and decide if the token will be delisted. MXC will also delist a project that are alleged law/regulation violation by Securities and Exchange Commission (SEC) or also if the key members of the project are out of contact for more than two weeks.
Additionally, users’ feedback is also important to us. If MXC receives large amounts of complaints from the project communities, and the project party fails to make improvement after receiving notification from MXC, the token will also be delisted.
2. Low Volume and Liquidity
When a token has high trading volume, there would also be a high degree of liquidity. This means that the coin is widely popular amongst users, creating a strong incentive for the exchange to continue supporting the token. However, supporting a token on an exchange comes with high economic resources. Thus, when a token experiences a low volume and liquidity, it no longer makes sense for an exchange to support it. For MXC, the token will be delisted if the daily trading volume of the trading pair is less than 5 BTC, the daily number of trades is less than 50 for a consecutive week, or if there is no trade record for trading pair in the last 24 hours.
3. Breach of Technical Security
Given the digital nature of operations, security is the utmost consideration of any project. MXC will hide or delist a project, where the project party refuse to pay security deposit even if there are existing potential security risks upon mainnet swap of the project, there are bugs in the project smart contract code or there is potential that the project may be attacked by 51% or be forked.
What is the Hiding and Delisting process like?
MXC follows strictly to a Standard Operating Procedure when it comes to Hiding and Delisting.
In general, MXC will release official announcements through its official social media platforms and websites before proceeding with hiding or delisting a trading pair. The specific time when the token will be hidden or delisted will be explicitly stated in the announcement and will be strictly adhered to. Given the different risk levels across different projects, the notice period for hiding and delisting may vary from less than 24 hours to a week. Nonetheless, in the best interest of the community, MXC seeks to provide adequate buffer between announcements to facilitate mass withdrawal during a Delisting.
Do ensure to keep your notifications from MXC Exchange on so that you can always receive the latest updates!
What would happen to my token if I already bought it?
Please be assured that your funds are never lost. A window period will be opened after delisting so users can withdraw their tokens from MXC Exchange to an external wallet or exchange that trades the delisted token even though trading of the tokens is no longer allowed on MXC.
Users holding on to existing tokens can either sell off the tokens before the delisting date or transfer it to a private wallet off the exchange. Withdrawal limits will be reduced accordingly during this period depending on existing gas fees to facilitate mass withdrawals within this period.
For users who have a pending trade order, do cancel the order as soon as you have received the announcement. If the order is not cancelled after delisting, the pending order system will automatically cancel the order for you, and the relevant assets will be returned to your spot account.
What if I do not withdraw my funds before the specified deadline?
Upon the specified date for token delisting, all inflow of bought-in tokens of that specific token will be halted. All delisted tokens will be reflected in your MXC wallet, but users can only transfer it to another wallet off the exchange that still accepts trading of the delisted token. Withdrawal limits for the delisted tokens will be reduced accordingly depending on existing gas fees to facilitate mass withdrawals. However, there will be a waiting time. Hence, we advise all to stick to the stated withdrawal period to ensure a smooth and efficient transition.
While users can choose to hold on to the delisted tokens in their MXC wallet, they would not be able to engage in any trading with these tokens. Please note that MXC Exchange will not relist any tokens that have been delisted.
Are refunds possible? If yes, what sorts of refunds are there available?
It is highly encouraged for users holding on to any remaining tokens to transfer them out to other wallets who are engaged in trading the token. This is to ensure users the most efficient and pleasant experience possible.
How do I withdraw my tokens after it has been delisted?
A breakdown of steps will go as follows:
Step 1: Log into your MXC account and head over to ‘Assets’
Step 2: Click on the ‘Withdrawal’ icon and search for the delisted token you wish to withdraw. Here we use USDT as an example.
Step 3: Copy the wallet address of the wallet you will be transferring the token to, and paste in “Wallet Address”. Select “Withdraw All” as withdrawal amount. Press Submit.
Step 4: Click on “Recent Withdrawal Records” or “All Records” to check the status of withdrawal. You can also check your withdrawal by visiting the third-party platform or wallet in which you have transferred to.
*Do note that for every withdrawal, there will be gas fee incurred. Hence, the tokens received on the other platform will be lower than your current holding.
Without the support and help of MXC community members, the mission of creating a benign trading environment is impossible. Therefore, MXC welcomes all users to provide information of all kinds about listed projects on MXC Platform. It is unavoidable to bring trouble and irritation in hiding or delisting trading pairs.
MXC trading: https://t.me/MXCtrade