Binance has announced the delisting of ALPACA, PDA, WING, and VIB, effective May 2. While the latter three tokens plummeted in value, ALPACA surprisingly surged by 71.3%. Concerns about market manipulation and exit scams are being raised among analysts.
Binance, the leading cryptocurrency exchange globally, has made headlines by announcing the delisting of four tokens, including Alpaca Finance (ALPACA), PlayDapp (PDA), Wing Finance (WING), and Viberate (VIB). This move was officially communicated by Binance, detailing that the delisting will commence on May 2 at 03:00 UTC, with deposits ceasing post-May 3 and withdrawals becoming unavailable after July 4. Open positions in Binance Futures related to these tokens will be closed by April 30.
The decision to remove these tokens aligns with Binance’s regular evaluation process, which assesses various factors like volume and liquidity, as well as the ongoing compliance with regulatory standards. Binance further clarified, “When a coin or token no longer meets these standards or the industry landscape changes, we conduct a more thorough review and may delist it.” They emphasised their commitment to user security and market adaptability.
This announcement follows the conclusion of Binance’s recent “Vote to Delist” campaign, where 8.2% of votes were cast in favour of removing PDA. ALPACA had 6.3%, while WING received 3.8%. Interestingly, VIB was excluded from the community voting process among the 17 tokens. Notably, although FTX Token (FTT) led the voting with 11.1%, it was not on the list for delisting.
In the wake of this news, the market reacted sharply. Tokens PDA, WING, and VIB fell sharply, with WING facing a downturn of 31.8%, while VIB and PDA dropped by 29.7% and 17.0% respectively. Conversely, ALPACA experienced a striking surge of 71.3%, coupled with an astounding 417.2% increase in trading volume. This upward trend seems unusual for a token facing delisting, causing analysts to raise eyebrows.
Typically, when a delisting is announced, the price tends to decline significantly. An analyst on X, previously known as Twitter, pointed out the strange behaviour of ALPACA, suggesting possible manipulation. “ALPACA after a major dump showed immense squeeze. Rose to over 100%; some heavy shorts were liquidated,0 heavy manipulation out there,” the post conveyed, urging investors to be vigilant against potential “exit scams” that could inflate prices artificially.
