delist

Summary:
When Binance delists a token, investors suffer devastating losses — often over 90%. With yearly revenues in the billions, Binance has the means and responsibility to protect its community. A delisting fund and stronger monitoring could prevent small investors from bearing all the damage
Binance, the largest token trading platform worldwide, generates enormous yearly revenue. To understand the scale:

Year Revenue ($bn)
2021 20.0
2022 12.0
2023 7.9
2024 16.8
Despite this success, when Binance decides to delist a token, the consequences for investors are devastating.
Investor Impact
Most tokens considered for delisting have already fallen ~80% in value.
After the delisting announcement, investors often face an additional 30–40% decline, pushing the total loss above 90%.
The effect is not limited to Binance users — once Binance delists, all markets follow, creating a domino effect.
For many retail participants who invested modest amounts, the result is catastrophic: their collective holdings represent huge lost capital.
Market Manipulation Concerns
Binance cites “project unreliability” or “manipulation” as reasons.
However, many tokens show suspicious trading activity on Binance itself: rapid spikes of 50–70% in minutes followed by steep crashes.
Trade records often show orders of just 5–8 USDT repeatedly — a pattern unlikely from real investors, but consistent with artificial activity.
Rebranded projects such as SelfKey illustrate how manipulation persists until delisting day.
Shared Responsibility
Other platforms, unlike retail investors, do not lose money when a token collapses. Yet small holders carry the burden. If there is genuine risk, responsibility should not fall solely on investors.
Two Concrete Solutions
1. Delisting Fund
Binance should create a yearly protection fund from its multi-billion profits. This fund could:
Buy back delisted tokens at investor purchase price, or
Provide partial compensation to soften catastrophic losses.

2. Enhanced Monitoring & Enforcement
The technical and trading teams should:
Investigate tokens with abnormal short-term pumps.
Check IP addresses of accounts repeatedly trading tiny amounts.
Ban identified manipulators before damage escalates.

Final Call to Action

Delisting is sometimes necessary, but the current approach leaves ordinary investors destroyed while Binance continues to profit. If Binance truly wants to remain the world’s most trusted exchange, it must:
Establish investor protection measures,
Improve oversight against manipulation, and
Take shared responsibility for the tokens it lists.
Otherwise, every delisting will not only erase investor savings but also erode confidence in Binance itself. Trust is harder to rebuild than any chart or market trend.
@Binance Labs
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