One of the biggest cryptocurrency exchanges out there, Bittrex, recently announced it’s going to remove 82 de-listed token wallets later this month to ensure its users have access to cryptocurrencies that meet its strict listing criteria. Some of the tokens being delist have low liquidity, while others reportedly don’t have a functioning blockchain.
The US-based exchange recently announced the move, while warning the tokens will be removed from its platform on March 30. This means users need to withdraw their tokens by then, as the coins won’t be redeemable after they’re removed.
— Metamorphose (@hlopchik3000) March 16, 2018
Bittrex further noted that tokens with broken wallets or blockchains won’t allow their users to withdraw, as the coins themselves aren’t working. Most of these cryptocurrencies, including CRBIT and CRYPT, are seemingly not even listed on CoinMarketCap.
Justifying its move, Bittrex’s announcement reads:
“Occasionally, there are circumstances that lead Bittrex to remove a coin’s wallet or market from the Bittrex Exchange. These actions are taken to ensure customers have access to digital tokens that continue to meet our strict coin listing criteria and have a properly functioning blockchain and wallet.”
Bittrex was once one of the largest cryptocurrency exchanges. Various investigations found users were running pump and dump schemes on its platform. These, coupled with other issues, helped the exchange’s trading volume tank from over $1 billion a day to $172 million at press time.
Wash trading and price manipulation are somewhat common in the cryptocurrency ecosystem, especially when it comes to low-volume cryptocurrency pairs. As covered by Ethereum World News, Bittrex revealed in November that it would crack down on these schemes.
Being based in the US, the exchange has to register with the Securities and Exchange Commission (SEC) before processing trades involving tokens. The regulator recently ordered cryptocurrency exchanges to either de-list initial coin offering (ICO) tokens, or register with it.
Often, cryptocurrency traders use other exchanges to find these relatively unknown tokens. These include decentralized exchanges like EtherDelta, or Christchurch-based Cryptopia. These are, however, seen as risky investments due to their lack of liquidity and potential lack of development.