Listing and delisting

Listing is when an exchange adds a coin for trading; delisting is when it removes it. After a delisting you can no longer trade the coin there and can withdraw it only until a deadline.

How it works

Each exchange decides which coins to add using its own criteria: liquidity, user demand, the project, legal risk. A listing announcement on a big venue often sends the price up sharply, and that move often fades soon after trading starts.

Delistings happen because of low volume, project problems, hacks, regulator demands or rule breaches. The exchange usually announces dates in advance: when trading pairs close, when deposits stop and the last day to withdraw.

For holders, a delisting means less liquidity and usually a lower price. If you do not withdraw in time, getting the coins back can be hard: some exchanges later convert leftovers to a stablecoin at their own rate, and some do not.

Example with numbers

A coin trades at $1.00. An exchange announces a listing in three days, and before trading opens the price elsewhere climbs to $1.60. In the first hour many sell the news, and a week later it is $1.10. Anyone who bought the $1.60 top is down almost 31%.

Common mistake

A common mistake is buying right after a listing announcement and expecting the rise to continue. The pop is usually already priced in, and early buyers sell to you at the top. If you hold a coin being delisted, do not wait for the last day: withdraw or sell early, following the exchange's official dates.

Questions and answers

What do listing and delisting mean in simple terms?

Listing means a coin was added to an exchange and can be traded. Delisting means it is being removed, trading stops and withdrawals stay open only until a set date.

What happens to my coins after a delisting?

You can no longer trade them on that exchange. Withdraw them to your own wallet or to a venue that still lists the coin while withdrawals are open.

Why does price go up after a listing?

The coin becomes available to many new buyers, and hype adds to it. Often the rise happens before trading starts, and the price pulls back after.

Listing and delisting

How it works

Questions and answers

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