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Traders Have Until 30th March to Withdraw Their Coins as Bittrex Set to Axe 82 Tokens

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A report from Bittrex Exchange has indicated that 82 tokens will be removed from the cryptocurrency’s trading platform. The report says that the team evaluates various aspects before removing a cryptocurrency from its platform and the main reason for the removal of the 82 tokens is inadequate liquidity. Traders have until 30th March to withdraw their coins.

We will be removing the wallets included in the list below on March 30, 2018. Once these wallets are removed, we will no longer be able to recover these coins. Users must withdrawal their coins before March 30, 2018, in order to keep them,

-Reads part of the statement.

Bittrex has also said that various cryptocurrencies have broken blockchains or wallets which will not allow users to withdraw their balances.

The coins marked with an asterisk (*) have broken blockchains or wallets that will not allow withdrawals,

-Said Bittrex. These include cryptocurrencies like CRYPT, APEX, BITZ, and CRBIT among others.

Fabricated Cryptocurrency Prices

Leading exchange platforms have faced difficulties in sustaining a stable order book if cryptocurrencies do not have enough liquidity and demand from users of the platform. The inadequate liquidity leads to fabricated prices which can be kicked off with funds as little as $50,000, as was shown in a recent study by a cryptocurrency trader Sylvain Ribes.

Through the use of a method known as slippage a process of selling $50,000 worth of a particular cryptocurrency on a trading platform to measure its impact on the price, Ribes evaluated the liquidity of digital assets on major exchanges like OKEx and GDAX. While GDAX had a slippage of less than 1 percent, on OKEx and other cryptocurrency-only exchanges with low market cap or volume cryptocurrencies, each sale of $50,000 led to a 2 to 10 percent drop in the market value of cryptocurrencies. Ribes said,

A bit of wash trading and artificial volume inflation is to be expected in a thoroughly unregulated market. What I did not expect was the magnitude of the fraud,

“Many pairs, albeit boasting up to $5 million volumes, would cost you more than 10% in slippage, should you want to liquidate a mere $50k in assets,” he added.

The wash trading and price fabrication are common in cryptocurrency trading platforms, especially with small currencies. These aspects have recently attracted the wrath of regulators from across the world, and exchanges have become stricter on small cryptocurrencies. The US Securities and Exchange Commission (SEC) recently warned investors against pump and dump schemes that are often seen in the cryptocurrency market. “Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams”, warned the SEC.

CCN reports that the SEC is going hard on crypto exchanges, urging them to delist tokens that have low liquidity to curb this menace. The purge is particularly being felt by US based crypt- based exchanges like Bittrex, and could be the reason behind the removal of the 82 tokens.

What’s your take on the latest Bittrex move to delist 82 tokens from their platform? Share your thoughts wih us in the comments section.

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