Kucoin exchange has planned a new method for trading the underperforming tokens. These tokens are considered as useless but this process gives them a special treatment area. The token is upgraded or a permanently eradicated.
Kucoin aids the tokens which develop a low trading volume and are excepted a placement in special treatment. The tokens which have legal issues have a chance towards delisting or eradicating it permanently. Basically, these assets have an opportunity to earn a reprieve. The coins moved into an ST Zone and are marked for giving traders a warning to be careful before investing.
Kucoin’s new policy is been welcomed by many traders. It adds a translucent and offers a warning of assets which can be evacuated. There are various exchanges that eradicate coins at short notice with or without any statement.
For instance, Bittrex has removed dozens of coins at a time. It left traders ruminating as to find the reason for their removal of coins. Few had no trading volume and others are deemed as securities which are traditionally been used.
There are few reasons why a token is moved to a newly designated ST area listed by Kucoin.
- Coins have negative trading volume for a certain time
- Coins can cease business activities for certain months
- In case of insolvency or bankrupt, these coins are in a position to become subject to proceedings.
- Few coins also have negative opinions by the company auditor.
- Some Coins fail to submit the update reports inconstancy with the rules and regulations required for exchange in terms of project management. This leads to change in status and other requirements of the project.
- The project team can dissolve due to some other reasons
- The company’s activities can be considered as a malicious when compared to the market.
- Overall, there is being some other circumstances intent by exchange from time to time.
At the first place, a cynic is in the process to point out that exchanges are happy to accept tokens. These are coins can be hefty listing fees and run into hundreds and thousands of dollars. Kucoin is specific from past months on adding tokens faster than any other major exchange. It is defensible, as the platform is willing to accept the digital token and trying to eradicate useless tokens.
Well, it is an amazing step taken by Kucoin to remove coins. We would like to hear your opinions on Kucoin exchange’s plan to eliminate useless coins through twitter and telegram.