Kucoin exchange has devised a novel way of dealing with underperforming tokens. Rather than delist them, or leave them to die a slow death, it will send them to a “special treatment area”. Once placed on the token equivalent of the naughty step, they will be given a chance to buck up or risk being permanently removed.
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Kucoin Sends Badly Performing Tokens to the Naughty Step
Tokens that develop a low trading volume can expect placement in a special treatment (ST) area by Kucoin. Likewise with tokens whose team run into legal difficulties or go AWOL. It’s the first step towards delisting, aka a permaban, though assets will be given a chance to earn a reprieve. Coins that are moved to the ST zone will be marked as such, giving traders notice that there’s a risk of removal.
Kucoin’s new policy has been welcomed by many traders, as it adds transparency and provides warning of assets that may be purged. Many exchanges delist coins at short notice and with little or no explanation. Bittrex, for example, has delisted dozens of coins at a time, leaving traders speculating as to the reason for their removal. While some of these clearly had no trading volume, others may have been deemed as securities, though it has traditionally been hard to tell.
Badly behaved token teams will be sent to Kucoin’s naughty step
Eight Reasons to Receive a Timeout
Kucoin has listed eight reasons why a token may be moved to its newly designated ST area:
Cynics will point out that exchanges are only too happy to accept these tokens in the first place, and to pocket the hefty listing fees that can run into hundreds of thousands of dollars. Kucoin in particular has gone listing crazy over the past few months, adding tokens faster than any other major exchange. It is arguably due to the platform’s willingness to accept virtually any token that it now finds itself having to remove the worst performers.
Do you think other exchanges should follow Kucoin’s lead and provide warning of tokens that may be delisted? Let us know in the comments section below.
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