The news of the removal of trading pairs for privacy tokens DASH, Monero (XMR), and ZCash (ZEC) by the cryptocurrency exchange platform OKX had a significant impact on the values of these digital assets. This decision, set to take effect on January 5, led to a decrease of up to 10% in the value of these tokens, eliciting reactions from both the user community and the overall market.
OKX justified its decision by stating that it responds to user feedback and its own listing criteria, as outlined in its “OKX Token Delisting/Hiding Guideline.” While the exchange did not explicitly specify that the delisting is linked to the tokens’ ability to offer increased privacy in transactions, it is noteworthy that the majority of the affected tokens belong to the category of “privacy coins.”
Privacy coins like DASH, XMR, and ZEC are characterized by preserving anonymity by complicating the tracking of money flow within their networks. This feature makes them attractive to users seeking to safeguard their financial activities from potential intrusions or monitoring. However, it also places them in a less favorable position in the eyes of regulators, who express concern about these coins’ ability to circumvent transparency in financial transactions.
The removal of over 20 trading pairs of these tokens on OKX reflects a shift in the platform’s policy regarding privacy-focused cryptocurrencies. This move may be influenced by the increasing attention and regulatory scrutiny surrounding anonymous transactions. As regulators seek greater control over the cryptocurrency space, coins offering high levels of privacy may encounter stricter regulatory challenges.
The market’s reaction to this news underscores investors’ sensitivity to decisions made by major exchanges. The removal of trading pairs can impact the liquidity and accessibility of these tokens, subsequently influencing their valuation. Over time, the cryptocurrency industry may experience the effects of regulatory pressure, and interactions between exchanges and regulators are likely to continue.
OKX’s Decision Takes a Toll on Delisted Tokens
Following the announcements, collateral damage ensued. According to CoinMarketCap, it was a profoundly negative day for the tokens. Dash (DASH) lost 7.15% of its value in the last 24 hours, dropping to $35.09 per unit. Its market capitalization similarly fell to $402 million. Additionally, there was nearly a 20% increase in its volume, surpassing $111 million.
Monero (XMR) experienced a milder impact. Its price decreased by 2.35%, settling at almost $173 per token. Its market capitalization also fell to around $3.1 billion, and its volume surged by 7.5%, reaching $128 million.
Finally, Zcash (ZEC) emerged as the most affected of the day. Its price and market capitalization plummeted by just under 10%. Its current market value is approximately $29.52, with a capitalization of around $484 million. Meanwhile, its volume jumped by 25%, reaching $96 million.