The five more coins will get delisted by Binance tomorrow. These coins are CloakCoin (CLOAK), Modum (MOD), SALT (SALT), Substratum (SUB), and Wings (WINGS). The reason named by the famous exchange platform is the failure of these projects to match the high standard of the currencies listed on Binance.

Quotation:

“At Binance, we periodically review each digital asset we list to ensure that it continues to meet the high level of standard we expect. When a coin or token no longer meets this standard or the industry changes, we conduct a more in-depth review and potentially delist it.”

Which standards do they mean? Binance has another list — the list of rules that should be followed by the Binance altcoins.

1. The team should be devoted to the project.

2. The development of the product should be kept active and high quality.

3. The team should support the stability of the smart contracts and network in general.

4. The public image of the project should satisfy Binance.

5. The project team should be responding to the Bianace requests as quickly as possible.

6. Proven fraudulent or another unethical activity is not tolerated by Binance.

7. The project must contribute to the healthy crypto ecosystem.

In theory, this list looks quite legit if not obvious, but the people who work hard to maintain their projects feel shocked and disappointed when their products get delisted by Binance. The prices of the mentioned five altcoins have already dropped drastically.

CloakCoin (CLOAK)

CloakCoin is designed for the stealth trustless fast transactions. 74% of CLOAK trade has been executing on Binance so it is no surprise that the price dropped by 14% immediately after the bad news. The reason for delisting was the moderate (at best) interest from the community and relatively rare updates of the product.

The CloakCoin project manager response: “The news on Friday about Cloak being delisted from Binance has emotionally shocked me. As CloakCoin’s project manager this is an even harder hit for me because I very strongly identify myself with the project. Binance is a reputable player in the crypto scene. This unsubstantiated and incomprehensible message tarnishes CloakCoin’s reputation in a negative way […] Looking back at the regular contact made with Team Binance previously, I hope for a detailed explanation regarding which of the points apply to CloakCoin.”

Modum (MOD)

Modum had ambitions of disrupting the supply chain industry, but there were no updates of the project since April 2018. 99% of MOD trade was going via Binance so the delisting causes serious troubles for Modum.

The response of the Modum team was short but it was mentioned that the developers didn’t receive any prior message from Binance and they are going to appeal this decision.

Wings (WINGS)

Over 80% volume of the Wings trade happens on Binance. When the users were struck with the news the token lost 16% of its value. The Wings project is meant to be a decentralized crowdfunding project built on top of the Ethereum blockchain. The reasons for delisting are unclear because no violations from the Wings team side have emerged.

According to the Wings team, the news about delisting was unexpected, and Binance didn’t make any prior attempts to discuss such perspective: “The delisting was a big surprise for us, since we have not received any notification about the pending delisting, hence had no chance to resolve any issues they may have found with the project. In fact, up to this very moment we have no information why Wings specifically was picked, despite our repeated inquiries to Binance.”

SALT (SALT)

Unlike the previously mentioned projects that had market cap ranks around 300–350, SALT ranks 161st. The price of the SALT token dropped by 9%. SALT is a lending platform, but it became known that the US Securities and Exchange Commission (SEC) was investigating SALT’s activity because some believe that this platform is just a Ponzi scheme. Subpoena was issued this month.

Despite the lack of the conclusion made by SEC, SALT was delisted without any warning or a comment from Binance.

Substratum (SUB)

The SUB price decreased by 19& after the news emerged. The project is ranked 182nd by market cap. Substratum is a decentralized info storage platform. There are rumors in the community that the company is a scam. The first accusations surfaced in November 2018.

The Substratum reaction:

“This decision came as a surprise, with no advance warning. We are terribly disappointed in the decision and their handling of the delisting. To be specific:

1. We were not questioned regarding any issue(s) to make sure the issue(s) is factual before making this decision.

2. We were not given an opportunity to clear up any real/perceived issue(s), such as a probationary status or deadline to fix.

3. We were not given any conditions for relisting.

Binance has since indicated that our delisting is due to the trading of ICO funds. We are attempting to reach out to Binance to provide them with documentation to show that is not the case.”

Opinion

Binance is a significant player on the crypto market. As an exchange platform, this company built its success on top of the relevancy of other decentralized projects because there was people’s demand on this or that cryptocurrency. Obviously, Binance should be grateful to the people providing them with work (and profit), but this case of delisting shows that Binance is not ready for dialogue. They make serious decisions without even contacting the projects’ managers, treating partners in authoritarian style. It’s wonderful how they require the responsiveness from their partners and decline to give a warning or comment when they drop them off. The Binance administration thinks they are too good to explain themselves, and that’s not a good example of business ethics.

None of the delisted projects were ever brought back to the Binance list to date. So we can expect that this unexpected delisting can appear to be a real challenge for CloakCoin, SALT, Modum, Substratum, and Wings. Do you think it’s OK to have business with such partner as Binance? I doubt.