CRYPTOSTAKE
StakingMarketRegulationCryptostake ExplainsUncharted
Binance to Delist Monero at the End of the Month, Causes the XMR Price Meltdown

Monero (XMR) price falls over 30% in a day on the backdrop of delisting announcement 

It's no surprise that regulators and numerous cryptocurrency platforms are cracking down on privacy coins. Governments are wary of these coins circulating freely, as it would hinder regulators and law enforcement agencies from effectively controlling the movement of funds and freezing assets as needed. The crackdown on privacy coins like Monero, ZCash, and Dash began almost immediately after blockchain technology gained mainstream attention. 

This time, Monero (XMR) has been dealt a significant blow, as the largest exchange platform, Binance, announced its intention to delist XMR, along with ANT, MULTI, and VAI. The exchange cited several factors influencing this decision, including the level and quality of project development, network stability, and the level of public communication. This move signals a tightening regulatory environment for privacy-focused cryptocurrencies like Monero, as exchanges aim to align with evolving compliance standards. The trading pairs scheduled for removal on February 20 include XMR/BNB, XMR/BTC, XMR/ETH, and XMR/USD. 

After this date, deposits in these coins will no longer be available, and withdrawals will cease on May 20. Users who do not withdraw their funds in these tokens by this deadline will have the option to convert the affected cryptocurrencies to stablecoins. However, this option is not guaranteed for all users. Users will be notified separately before the conversion, if applicable, and stablecoins will be credited to their Binance accounts afterward.However, users following the platform's announcements anticipated the delisting, as Binance disclosed in early January that it had placed monitoring tags on several cryptocurrencies, including ZCash (ZEC) and Horizen (ZEN). Another major centralized exchange, OKEx, also removed the mentioned pairs from trading, along with Dash (DASH) and a bunch of other tokens.  

The capitulation of XMR price following the announcement

The delisting news prompted a swift reaction from Monero's price, leading to a sharp decline. By 10 am UTC, XMR dropped to $136 on Binance, marking a nearly 19% decrease in value within a few hours. But that was only the beginning…

 

XMR/USDT 1-hour chart. Source: Tradingview

Nearly ten hours after the announcement was published, the price of XMR has sunk like a lead balloon, now sitting at $107, which is 35% below this day’s open. This drop in XMR's price is the largest since mid-July last year. It shows how vulnerable the cryptocurrency is to market changes and regulatory decisions. With such a dynamic, XMR is poised to break the two-year low ($98.2) and possibly drop to $80 or even $75. Considering the circumstances, reversing the bullish trend and returning to $200 seems unrealistic.