Binance - the world’s largest cryptocurrency exchange, is often considered the “golden stamp” for a token once it gets listed on the spot market. However, in recent months, the rising trend of token delistings has raised serious questions about the sustainability of its listing ecosystem.

This article analyzes the ratio between tokens listed on the spot market and those delisted from Binance over the past three years, offering key insights for investors.

Listing vs. Delisting Ratio

According to data compiled from CoinGecko and Dune Analytics, from early 2021 to May 2025, Binance listed over 420 tokens on its spot market. During the same period, nearly 70 tokens were delisted, equivalent to a delisting rate of approximately 16.6%.

On average, for every 6 tokens listed, 1 token is delisted within the following 1 to 2 years. This is a notable statistic, especially given that many investors still view a Binance listing as a mark of safety and credibility.

However, one noteworthy trend is the shift in how Binance handles delistings. Instead of delisting tokens sporadically, Binance has moved toward a more cyclical and transparent evaluation process. This is evident in large-scale delisting batches in November 2024 and April 2025.

In these rounds, for every 10–15 tokens listed, a batch of 5–10 tokens was removed at once, signaling that Binance is adopting a cluster-based cleanup strategy, especially during market downturns or when listing standards are tightened.

This model reflects a stricter quality control policy, moving away from relying solely on individual token performance. It aligns with a broader push for improved regulatory compliance and higher project standards in a more mature market environment.

Reasons for Delisting and the Periodic Review Process

Binance enforces a strict evaluation process before listing any new token. Key criteria include the development team, liquidity, legal compliance, and technological value.

These same criteria are also applied periodically to reassess listed tokens. If a token no longer meets the required standards, Binance may decide to delist it.

According to Binance Academy and Binance Support, common reasons for delisting include low trading volume, lack of technological progress, regulatory or security issues, and in some cases, delisting is requested by the project team itself.

In addition, Binance has recently introduced a "Community Delisting Vote" mechanism - allowing users to propose the removal of underperforming tokens from the platform.

Beyond technical and regulatory factors, delisting is also a strategic move to prevent liquidity fragmentation across too many tokens. When a large number of assets are listed, trading volume and capital can become diluted, reducing market depth and user experience. 

By removing underperforming or inactive tokens, Binance can concentrate liquidity on higher-potential assets - including exchange-backed coins, newly listed tokens, and leading ecosystem projects. This approach enhances trading efficiency and supports the growth of prioritized trading pairs on the platform.

Some Notable Case Studies

ALPACA (ALPACA) is a notable example. Although the token was announced for delisting in late Q4 2025, it unexpectedly surged by over 600% shortly afterward due to a sudden buying spree when liquidity reopened on decentralized exchanges (DEXs).

This highlights how “short squeezes” or speculative trading behavior can occur even after negative news, especially when the market senses low liquidity and potential supply scarcity across other platforms. However, this price rally did not reflect any fundamental recovery or long-term value of the token.

The case of MITH (Mithril) also drew attention when the token was delisted in late 2022. The project later sued Binance, alleging a lack of transparency in the delisting process.

This set a legal precedent, underscoring the regulatory risks exchanges may face if delisting procedures are opaque. It also serves as a reminder that being listed does not guarantee long-term validation unless the project maintains transparency and strong community engagement.

Similarly, TUSD, a stablecoin once actively supported by Binance, was delisted and had its liquidity withdrawn in March 2024 with little prior notice. 

This case emphasizes that even tokens with close ties to the exchange are not immune to delisting, especially if they face capital flow imbalances, lack transparency, or become entangled in external regulatory concerns.

What are the main takeaways?

Over the past year, Binance has actively listed many tokens tied to trending narratives such as GameFi, AI, meme coins, and real-world assets (RWA). However, many of these tokens average under $1 million in daily trading volume, suffer from poor liquidity, and exhibit high bid-ask spreads.

A significant number of these projects see their communities or development teams become inactive within just 3 to 6 months of being listed. This highlights the risk that tokens riding short-term hype may be delisted quickly if they fail to sustain growth momentum or maintain market support.

For example, meme coins like $XAI and $BOME were listed during waves of social media-driven FOMO. However, they soon experienced sharp declines in trading volume. As community engagement faded and roadmaps remained vague  with little to no updates from the teams, the risk of reassessment and delisting increased, especially if the projects failed to deliver sustainable value.

Previously, GameFi tokens such as DAR (Mines of Dalarnia) and $TLM (Alien Worlds), which were listed during the early 2022 hype cycle, are now seeing significant drops in trading activity and weakening community support, signaling potential reevaluation risks unless they pivot strategically.

Conclusion

An average delisting ratio of 1 in 6 tokens listed on Binance’s spot market is a clear indicator: getting listed does not equate to guaranteed safety.

A token’s listing on Binance does not ensure long-term price appreciation. There have been numerous cases where tokens surged 10x to 20x on listing day, only to crash by up to 99% within less than a year.

Tokens with high FDV (Fully Diluted Valuation) should be monitored closely for their vesting schedules, as many delisted projects had prolonged vesting models but saw teams abandon development or manipulate liquidity.