Binance, the largest cryptocurrency exchange in the world, announced that it will be removing four digital tokens from its platform. These tokens include Alpaca Finance (ALPACA), PlayDapp (PDA), Wing Finance (WING), and Viberate (VIB).
The three tokens PDA, WING, and VIB saw a significant drop in value immediately after the announcement of their removal. However, ALPACA defied this trend, recording an increase in its value despite the anticipated removal from the platform.
Details of the removal and its timelines
According to the official announcement, the removal decision will take effect on May 2 at 03:00 AM GMT. Starting May 3, users will not be able to deposit these tokens on the Binance platform.
Additionally, the ability to withdraw these tokens will be stopped after July 4. Finally, all open positions related to these tokens on the Binance Futures platform will be closed on April 30.
This decision comes as part of Binance's periodic review process, which assesses digital tokens based on several factors such as trading volume, liquidity, project team activity, compliance with regulatory requirements, and more. The platform stated that these tokens no longer meet the required standards, prompting the decision to remove them.
■ Motivations behind the decision and platform statements
Binance clarified in its statement: When any cryptocurrency or token does not meet our standards, or when the industry environment changes, we conduct an in-depth review and may decide to remove the asset. Our priority is to ensure the best services and protection for our users while continuing to adapt to changing market dynamics.
This move came shortly after the conclusion of the second round of the removal voting campaign, where 8.2% of participants voted in favor of removing the PDA token. The ALPACA token received 6.3% of the votes, while the WING token received 3.8%. The VIB token was not listed among the seventeen tokens included in the community vote.
Notably, the FTX Token (FTT) received the highest voting percentage at 11.1%, yet Binance did not include it in its latest list of tokens to be removed.
The rise of ALPACA despite the removal raises concerns
Following the announcement, the values of the tokens PDA, WING, and VIB dropped by double digits. Data showed that the WING token experienced the largest percentage decline, losing 31.8% of its value. It was followed by the VIB token with a decrease of 29.7%. The value of PDA also fell by 17.0%.
However, unexpectedly, the value of the ALPACA token rose by 71.3% after the announcement. Its trading volume also increased by 417.2%. This rise is unusual for a token that was announced for removal, causing concern among observers.
Typically, removal announcements lead to a significant drop in prices, as shown in previous market cases.
■ Warnings of potential manipulation and fraud
In a recent post on the X platform (formerly known as Twitter), one analyst pointed out that ALPACA's reaction is unusual, suggesting the possibility of market manipulation.
The analyst wrote: After a sharp decline, the ALPACA token saw massive buying pressure. It rose by more than 100%, leading to the liquidation of several heavy short positions. There is significant market manipulation.