Binance announced on Friday that they would be delisting five altcoins WINGS, SUB, SALT, CLOAK, and MOD. Binance is one of the world’s most reputed cryptocurrency exchanges.
Binance said that the reason behind the delisting was due to a lack of commitment to a team project, an indication of unethical/fraudulent conduct, as well as the quality of development activities.
The announcement did not evoke a huge surprise in the industry as some of the players that were delisted had a very shaky history.
The SALT has had an uneasy history as it came under the radar of SEC in February 2018. Back then, it was subpoenaed for distributing security tokens to the insiders besides seeking details of the $50 million it raised during its ICO.
Furthermore, according to the data disclosed by the CoinMarketCap, the price of SLAT fell from $18 to $1 which was stunning. The company was obliged to remove the option of repaying loans using SALT tokens. This caused them a huge concern as the tokens always had a fixed retail price which was marked much higher than the token’s market value.
As the Binance announced the delisting, SALT’s prices took a huge blow. The toke that was trading at $0.21 plummeted to as low as 0.17. This took place in a matter of an hourly candle. The decrease was a 19% change from the initial value.
Apart from this, the delisting of SALT by Binance will cause huge repercussions in the trading world as the former drew the majority of its trading volume from the latter. The trading volume and the price are expected t be impacted heavily.
Substratum has also been subject to a lot of negative discussions after the ICO came to an end. Brian Li claimed that there were many ambiguities concerning the funds collected in the name of ICO after it came to an end. Tokens including 702 BCH, 2.5 BTC, 35 LTC, and 1142 ETH. The report was worsened after he remarked that the CEO of Substratum was able to afford a ‘$400,000 home and a bunch of new toys in the first week of October 2017″.
Furthermore, the company’s founder, Justin Tabb conceded that they used the funds that they raised through ICO in the trades. As far as a company vying to decentralize internet, this is a big caution.
SUB faced the same fate as SALT as its prices fell from $0.044 to $0.026. This is a decrease of about 40.9% within the time frame of a couple of hours.
This is not the first time that the tokens have been delisted. In December, 32 tokens were labeled under the ST category. The tokens mentioned above were a part of this list too.