Recently, Binance dropped a bombshell; the new token delisting mechanism has arrived.

This has caused many retail investors to worry that the small coins they have painstakingly accumulated might be delisted by exchanges one day, resulting in a loss of money.

Today, let's talk about what this delisting mechanism is? Is your coin at risk? What should you do if your coin gets delisted?

First, let's take a look at what this delisting mechanism is about.

On March 21, Binance introduced a new feature called 'community governance'.



In simple terms, it allows users to vote on which coins can stay and which must be delisted.

As long as you have 0.01 BNB in your account, you can vote 5 times on Binance Square. The delisting vote starts on March 21 and ends on March 27.

But don't think that voting will decide everything; in the end, Binance still has the final say.

They will look at the project's progress, whether the team is reliable, if the trading volume is sufficient, and if the community is active; voting is just a reference.

To put it bluntly, no matter how loud you shout, the knife is still in someone else's hand.

Which coins are likely to be delisted?

Binance has already listed some poorly performing coins, like JASMY, ZEC, and FTT, in the 'monitoring zone', and they are included in the delisting vote.



On March 28, the coins AERGO, AST, BURGER, COMBO, and LINA have already been delisted.

Why might a coin be delisted? The reasons roughly include the following:

Trading volume is too low: no one buys or sells, and exchanges feel there's no money to be made.

No updates from the project: The team isn't updating, and there's no community engagement; it feels dead.

Regulatory issues: Privacy coins like ZEC are being monitored by regulators in various places, and Binance does not want to take on risks.

Bad reputation: FTT is related to the previous FTX collapse, which has a significant negative impact.

Do the coins in your hands have these problems? You can check for yourself first, don't wait until you realize they're delisted after being notified.

How to tell if my Binance is unsafe?

You can check with these 3 tips:

Check trading volume: Open Binance and see how much trading volume your purchased coin has daily. If it remains below hundreds of thousands of dollars for a long time, it might run into trouble.



Check the dynamics: Go to the project's official website or X and see if there have been any updates from the team in the last three months. If there are no updates, be cautious.

Check popularity: Search for the token name and see if there are many discussions online. If no one is mentioning it or if all the news is fake, the risk is high. For example, if you bought a small coin that only has a few thousand dollars in trading volume per day and the team has no updates, you need to be cautious.

What should you do if the coin gets delisted?

If it really gets delisted, don't just wait foolishly; if you have no faith in it, sell it quickly.

Usually, when the delisting news comes out, prices will drop (like JASMY dropping 10%, FTT dropping 38%), so take advantage of the remaining trading to quickly sell and convert to Bitcoin or USDT.

If you believe these projects can still rise, you can check on Coinmarketcap to see which exchanges still support them, and you can transfer the coins there.



Binance also said that before February 2025, they won't withdraw the delisted coins; they might be converted to stablecoins, and the specific gains or losses will depend on luck.

How should beginners avoid pitfalls?

For beginners, to avoid pitfalls, remember not to buy small coins randomly. Try to avoid projects with low popularity, low consensus, and low trading volume, as the risks are too high.

Also, diversify your investments; don't put all your money into one coin. If one gets delisted, it won't result in a total loss.

Summary

This new delisting mechanism from Binance superficially allows everyone to vote, but in fact, they still set the rules themselves.

For retail investors, the risks of small coins have increased. Once Binance officially delists a coin, the market consensus for that project may quickly collapse.

You can check if the coins in your hands are at risk of being delisted; don't just focus on the price; whether the project itself is reliable is more important.

What small coins have you bought? Do they have delisting risks? Let's discuss in the comments.