Delisting is the process of removing a cryptocurrency from an exchange. The delisting may be voluntary, initiated by either the exchange or the issuer, or it can occur involuntarily due to regulatory changes, lack of liquidity and other factors.
When a cryptocurrency is voluntarily delisted from an exchange, that usually means that there were some issues with its performance on the platform—such as low trading volume—and both parties decided to end their partnership without any legal ramifications for either party. If this happens, investors will no longer be able to trade coins associated with that particular currency through that specific outlet.
On occasion when cryptocurrencies are forced off exchanges because of new regulations passed in certain countries (or even globally), this could mean serious consequences for holders who use those digital tokens as investments; they may have difficulty converting them into cash if their coin has been removed from all major exchanges in which it was traded prior to the change in regulation. In addition, once a token loses its listing status on these platforms then it also becomes more difficult for people interested in buying said currency since fewer outlets exist where buyers can purchase these coins directly using fiat currencies such as USD or EURO’s etc.. Furthermore smaller markets like “altcoins” become significantly harder to access if one does not have direct access via online wallets/exchanges hence impacting potential investor interest resulting decreased overall value & liquidity thus causing further damage for affected projects & users alike .
Delistings should always be taken seriously – especially when they involve well-known crypto assets – as prices typically suffer immediately after such announcements are made public while recovery time varies depending on many variables including market sentiment , technical features offered & current demand dynamics within respective industry verticals .
