Bittrex is Removing 82 Token Wallets From Its Trading Platform
Last week Bittrex announced it is removing 82 cryptocurrency wallets from its exchange on March 30. Bittrex is one of the largest altcoin exchanges in the world and is based in Nevada. The company is citing lack of liquidity and demand for these coins as the reasons for their delisting, as well as technical issues with many of the wallets.
Bittrex warns users that once the wallets associated with these coins are removed, there will be no way to recover the coins. Users are urged to withdraw their coins to an external wallet not operated by Bittrex before the 30th.
Lack of liquidity is a serious problem because it allows for easy price manipulation by high value traders. Price manipulation creates excessive risks for investors without access to high quality information, who are often the victims of pump and dump schemes.
The formal announcement by Bittrex regarding these wallet removals, including a list of the coins being removed, can be found here. Note the coins marked with asterisks, whose blockchains or wallets are not functional. These coins cannot be withdrawn, and Bittrex is assuming no liability for users’ loss of funds for these coins, because any technical issues are a result of the non-functional underlying blockchains. Among the 82 coins being removed, 28 are marked with asterisks. While 54 coins are being removed simply due to lack of liquidity and demand, the remaining 28 (34%) are also plagued with technical wallet or blockchain issues.
Purges of low liquidity coins from major exchanges may become more common moving forward, as the cryptocurrency space will mature and regulations will likely force weak coins out of the market. Many cryptocurrency investors may see this as a positive, as the aggregate supply of all cryptocurrencies will start to decrease, making those that remain even more valuable.
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