Binance Kicks Off First Delisting Vote, $JASMY, $ZEC, $FTT Among 21 Tokens at Risk

In a historic step, Binance has officially initiated one of its first-ever votes for delisting, granting users the authority to decide which tokens stay on the platform and which ones get booted off.

Voting commenced on March 21 at 14:30 (UTC+8), and it will not close until March 28 at 07:59 (UTC+8). This marks a significant change in the way Binance conducts business. It’s now making a more direct appeal to users to help decide what gets to stay and what gets to go.

The potential delisting of 21 tokens has attracted a significant amount of attention in the crypto community. High-profile tokens like $JASMY, $ZEC, and $FTT find themselves among those potentially getting the boot. Who’s making the call? At the end of the day, it will still be Binance making its internal assessments that count. So, while user voting is indeed a part of the process, what we really have here is a public assessment of the quality of these tokens by the Binance user base.

How the Delisting Vote Works

The vote on whether or not to delist a token from Binance gives the exchange’s users an unprecedented way to help decide which tokens stay on the platform and which do not. Each verified user can vote on up to five different tokens, and they can only vote once per token. Even with these supposedly generous parameters, though, some seem to think the delisting vote is a bit rich.

While the voting process enables users to articulate their positions, the final call resides with Binance. It conducts an internal review that weighs several factors: trading volume, regulatory compliance, and more. Despite this seemingly top-down process, Binance has built a decent reputation regarding token selection.

Tokens Under Scrutiny

The delisting vote encompasses a wide array of tokens, with many of the most well-known names in the cryptocurrency industry possibly headed for exit. Included among the tokens in the delisting tug-of-war are:

– JasmyCoin ($JASMY)

– Zcash ($ZEC)

– FTX Token ($FTT)

– aelf ($ELF)

– Status Network Token ($SNT)

– Stably USD ($STPT)

– Balancer ($BAL)

– ARK ($ARK)

– GPS Network ($GPS)

– MobileCoin ($MBL)

– Prosper ($PROS)

– Cortex ($CTXC)

– HARD Protocol ($HARD)

– Beta Finance ($BETA)

– Cream Finance ($CREAM)

– Firo ($FIRO)

– VIDT Datalink ($VIDT)

– Nuls ($NULS)

– Troy ($TROY)

– Alpaca Finance ($ALPACA)

– UniLend Finance ($UFT)

Intense scrutiny is now being applied to these tokens as Binance’s user base decides their ultimate fate. For certain projects, this could be a now-or-never moment, with their continued presence on Binance hanging in the balance. The public vote has ignited a burst of activity among the constituencies of various tokens, each group desperately trying to make sure that their token remains listed on the exchange. A constituency of a certain token will tell you that it is their asset’s future that is most at risk. Whatever happens, the daily drama of the unfolding vote seems destined to leave many tokens with somewhat more or somewhat less legitimacy in the eyes of the public.

What Does This Mean for Users and Projects?

For users of Binance, the delisting vote gives them a new way to influence the platform’s decisions. In a not-so-distant past, if the company wanted to remove a token from its platform, it effectively made that decision in a vacuum. This is less true now. What Binance has been clear about, though, is that the outcome of the vote will not be the sole factor in any final decision. Token performance and whether a project is up to snuff in terms of customer protection and compliance are definitely considerations that will weigh in on any final verdict.

For the projects at risk, the delisting vote presents a significant problem. Tokens that get taken off of Binance could see a steep drop in trading volume and liquidity, which might hit their market price and user adoption hard. But some of the projects might not see this as entirely negative. Instead, they could view it as a chance to work that community they’ve got in a more engaged fashion, to push back in the direction of improving their market standing and regulatory compliance.

For tokens like $JASMY, $ZEC, and $FTT, this is a moment of utmost importance. All three have robust support from their communities, but their potential removal from Binance’s listing suggests that the exchange is very concerned that these projects may not be sustainable over the long term. For example, $FTT has already been tied to the collapse of its associated exchange, FTX, and it wouldn’t be surprising if that connection made it more likely to be included in the vote to delist. Of course, $ZEC faces issues distinct from $FTT’s. While $ZEC is delisted, it is a popular privacy token. There are lots of legal and regulatory gray areas when it comes to this kind of token, and the word “privacy” has appeared in more and more regulatory discussions.

Looking Ahead: What’s Next for the Voting Period?

As the voting period goes on until March 28, Binance users and token holders will almost certainly be watching the results very closely. It is true that the final decision will not be dictated entirely by the vote, but rather by a combination of factors with the vote as one significant piece of the puzzle. In any case, the results of the vote will be a rather revelatory moment for all things Binance, no matter what you think of the trading platform—even if you think it is good or bad.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!