It is not uncommon for cryptocurrency exchanges to update their trading pairs. Actively removing currencies is also part of the job. The decision by Poloniex to delist seven assets next week hasn’t gone over well with the community.
Poloniex Announces Coin Delisting
Running a cryptocurrency exchange is a complex procedure. It requires a constant influx of capital to remain viable. Moreover, not all markets provided by a trading platform remain viable. Some will simply disappear into obscurity as interest in a coin wanes.
For Poloniex, delisting currencies and trading pairs is nothing new. Most of the company’s previous decisions also makes a lot of sense from a business perspective. The upcoming delisting of seven crypto assets, on the other hand, seems rather biased.
Reminder! January 30th is the last day to withdraw the following coins:
– DigiByte (DGB)
– Factom (FCT)
– MaidSafeCoin (MAID)
– Omni (OMNI)
– Primecoin (XPM)
– Vertcoin (VTC)
– Viacoin (VIA)
— Poloniex Customer Support (@PoloSupport) January 25, 2020
DigiByte, Factom, MaindSafeCoin, Omni, Primecoin, Vertcoin, and Viacoin will be removed on January 30. A bit of an odd decision, especially where those first four assets are concerned. According to Poloniex, they no longer “meet the criteria” to be listed on the platform.
In reality, there may be something else brewing. Prior to the announcement, Poloniex investor Justin Sun got into an argument with the creator of DigiByte. Following this “spat” on Twitter, Poloniex announces the delisting of DGB. Many people still view this as a vindictive action first and foremost.
Regarding the other assets, a lack of trading volume is a plausible reason. It also appears that Primecoin is no longer receiving active development. Viacoin is still a strong asset in terms of merged mining. MaidSafeCoin remains an active project with numerous development updates. Factom has recently signed a new partnership to advance its blockchain ecosystem. Even Vertcoin has the support of contributors at MIT.
Is Poloniex the Problem?
Rather than point a finger of blame at the projects, the exchange may be the problem in this equation. The past two years have been very rocky. Square initially acquired the company, yet spun it off again within a year and a half. Ever since, the Poloniex team received financial backing from the founder of TRON. A conflict of interest has seemingly ensued, albeit both sides claim that isn’t the case.
Making matters worse if the reputation of the exchange. While once a powerhouse, it has lost a lot of traction since. Lackluster customer support and technical outages don’t make for an appealing trading platform.
With the removal of these asses, one expects the company’s trading volume to decrease. Surprisingly, Poloniex’s volume has been on the rise since late 2019. How much of this volume is real, is difficult to determine. All trading platforms appear to suffer from wash trading.