Delisting

Exchanges delist tokens for several reasons: low liquidity and volume, failure to meet listing standards, a team that stops developing or communicating, security incidents, legal or regulatory concerns, and changes in local rules, such as privacy coins being removed in some jurisdictions or stablecoins that do not meet MiCA requirements being restricted for EU users. The process usually starts with an announcement and a date when trading stops.

After trading ends, users normally have a window, often weeks or months, to withdraw the token to another exchange or a self-custody wallet. Some exchanges convert leftover balances into a stablecoin or another asset after the deadline. Derivatives on the token are usually closed earlier.

Delisting announcements typically trigger sharp price drops, as liquidity disappears and holders rush to sell. The best defence is reading exchange notices, watching risk labels such as monitoring tags and checking whether a token trades on several venues before holding a large position.