Binance’s Move Triggers Other Exchanges to Delist Bitcoin SV
A single post about Binance’s decision to delist Bitcoin SV (Satoshi Vision), a Bitcoin Cash fork, has triggered other exchanges to consider a similar move.
Erik Voorhees’ ShapeShift is one of those that has confirmed its decision to follow Binance’s path. Unlike Bitcoin SV which will be delisted and cease trading on all Binance’s trading pairs on April 22 at 10:00 AM UTC, ShapeShift says it will delist the cryptocurrency in 48 hours.
Another top exchange considering delisting Bitcoin SV is Kraken. The US-based platform tends to seek out its users to make the final decision on whether to delist it or not. So far, about 47,000 votes have been recorded as having participated in the exchange’s Twitter poll on this important question about Bitcoin SV.
All-in-one crypto company, Blockchain.com, cites the “long-term health of the crypto ecosystem” as the rationale for its decision to end all support of BSV within the Blockchain Wallet by May 15.
Since the news of the delisting came out, the asset has lost about 20% of its value at the time of this writing – from $73 to $60. This growing list of BSV delisting efforts seems to have made the price of its split (Bitcoin Cash) appreciate. In correlation with the falling Bitcoin SV price, Bitcoin Cash gained about 15% to hit $332 at the same time.
Do the right thing. https://t.co/z7HGsAZnmR
— CZ Binance (@cz_binance) April 15, 2019
— Erik Voorhees (@ErikVoorhees) April 15, 2019
Rationale behind the decision
Going by its justification of the decision, BSV now falls among the digital assets that Binance considers no longer continue “to meet the high level of standard we expect.”
Though no particular key factor was identified in the exchange’s communication on why they decided to delist the digital asset, two of the highlighted that ring a bell are “evidence of unethical/fraudulent conduct” and “contribution to a healthy and sustainable crypto ecosystem”.
Tying these factors to the exchange’s proposed action could not be far-fetched though. Binance’s CEO, Changpeng Zhao – or CZ, recently referred to the founder of Bitcoin SV, Craig Wright, as a fraud. A key development that has spread insidiously across the crypto community is the way Wright handled the difference in views with other crypto projects especially by reportedly dragging a party within the ecosystem to court. Wright had also once claimed to be the unknown creator of Bitcoin, Satoshi Nakamoto.
While a section argues that customer exposure to potential loss on a listed project that may have been associated with fraudulent activity has to be limited, others challenge the move by the exchanges saying they could have let market forces play out.
An exchange has a duty to protect its users from fraud. However, opponents of the delisting move challenged it as one driven by ideologies instead of market forces to determine what gets listed or not.