Delisting
Delisting is the removal of an asset from an exchange. It can happen either as a request from the project team or, coming about because of the asset's team or the asset itself done maintaining the listing requirements given by the exchange. There are various factors that could go into the decision for an exchange to delist an asset. A portion of these factors are listed below:
- Overall team commitment to the project
- Quality and level of development activity
- Project network and additionally smart contract soundness
- Level of public communication from the project team
- Responsiveness to due diligence requests from an exchange
- Evidence of dishonest or fraudulent way of behaving
- Whether the project is adding to a solid, sustainable blockchain and cryptocurrency environment
- Different reasons, for which the exchange considers directing business with the project unsuitable or dangerous
At the point when an asset gets delisted from an exchange, its trading pairs are all eliminated. The asset can in any case possibly be traded on different exchanges (like decentralized exchanges), or through over the counter trading (OTC), yet trading activity on the exchange that delisted that asset will cease. After the trading pairs associated with the delisted asset are taken out, the assets withdrawals from the exchange will stay open for a predetermined period of time after the delisting. Along these lines, users have the option to pull out their existing funds kept on the exchange even however trading is presently not accessible on the platform.
Features
- A price below $1 per share for an extended period isn't preferred for major indexes and is a justification for delisting.
- The outcomes of delisting are critical and a few companies exhaustingly try not to be delisted.
- Delisting as a rule means that a stock has failed to meet the requirements of the exchange.
- Delisting happens when a stock is eliminated from a stock exchange
