Delisting of a cryptocurrency from an exchange can be defined as a process wherein the crypto asset is removed from an exchange due to various reasons. The reasons could be a request from the project team itself to the asset not holding to the listing requirements stated by the exchange. 

The policies for listing and delisting cryptocurrency varies from exchanges to exchanges. However, one thing that is most common for listing a cryptocurrency is the benchmark of being community-oriented. In the same way, cryptocurrency exchanges have its own standards or metrics for delisting a cryptocurrency, wherein, a common practice could be the downturn of the cryptocurrency or its trade.

The other reasons for a cryptocurrency to get delisted could also be when the revenue is affected, such as the cost of maintaining the token is higher than the revenue. The other risk factors involve regulatory risk, block reorganization risk, bear market or if the exchange gets hacked. The decrease in the trading volume of the cryptocurrency can also result in the delisting of the cryptocurrency.

The factors that could lead an exchange to delist a cryptocurrency are the commitment of the project’s team, development of the project, quality of the project, smart contract stability, project’s network, project’s reputation in the market, responsiveness behaviour of the project, ethical management of the project and many such more. 

Also Read, 10 Important Guidelines To Start A Crypto Exchange In 2020

The exchange being hacked could be surfaced through internal hacking, external hacking or a combination of both. For instance, in the year 2014, Cryptsy was stated to have been allegedly hacked when it listed a coin, it was said that the node software faced malware. Wherein the creators of the coin had utilized the full node software of its coin to access the system of Cryptsy and lead to draining the exchange for almost 13,000 BTC and 30,000 LTC.

The extensive auditing on token’s source code can also secure the exchange and help with risk management, however, given the factor with the endless number of cryptocurrencies and its codes, its a hectic process wherein the upgrades to the software also results to the practice being costly.

Thus, many times, delisting of the cryptocurrency occurs due to concerns relating to security.

When an exchange delists a cryptocurrency, the trading pairs are also removed from the platform. However, it is not necessary that when one exchange delists the others might too.

What can you do when your asset is delisted?

Any exchange announces before delisting a cryptocurrency. They give a window period to withdraw or look for alternatives such as some other exchange that still supports the cryptocurrency.

Also, there are articles, blogs, videos and podcasts that guides to deal with such situations or the preventive measures that you could pursue.

Cryptocurrency is a volatile market, things can change in a minute’s time. Thus in the world of cryptocurrency, vigilance is the key.