On September 22nd, 2021 Bakkt, the digital asset trading and custody platform owned by Intercontinental Exchange (ICE), announced that it would be delisting several tokens from its platform. Bakkt stated that it would be removing six tokens, namely AAVE, AVAX, COMP, FIL, MKR, and UNI. This move was unexpected, and it has left many in the cryptocurrency community wondering why Bakkt would take such drastic action. In this article, we will explore the reasons behind Bakkt’s decision and what it could mean for those who hold these tokens.
Bakkt’s decision to delist these six tokens came as a surprise to many people in the cryptocurrency community. Bakkt had previously been seen as a supporter of these tokens and had even listed them on its platform. However, with the recent delisting announcement, it seems that Bakkt has changed its mind.
One of the reasons cited by Bakkt for the delisting of these tokens is their lack of liquidity. According to a statement released by Bakkt, “after reviewing the trading volume and liquidity of the listed assets, we have decided to cease trading in the following tokens.” This suggests that Bakkt has determined that these tokens are not popular enough among traders and investors to justify their continued listing on the platform.
Another reason behind the delisting of these tokens could be concerns around regulatory compliance. Bakkt is a fully regulated platform, and as such, it must comply with a range of regulations and laws. Some of the tokens listed on the Bakkt platform may not meet these regulatory requirements, which could make it difficult for Bakkt to continue to offer them.
It’s worth noting that Bakkt isn’t the first crypto platform to delist tokens due to regulatory concerns. In recent years, many cryptocurrency exchanges have been forced to delist certain tokens due to regulatory pressure. This is because regulators are becoming increasingly concerned about some tokens’ potential to facilitate money laundering, terrorist financing, and other illegal activities.
So, what does the delisting of these six tokens mean for those who hold them? Well, it could potentially have a significant impact on the value of these tokens. When a token is delisted from a platform, it becomes more difficult to buy and sell it, which can limit its liquidity. This can, in turn, lead to a drop in the token’s price, as there are fewer people willing to buy it.
However, it’s worth noting that the impact of the delisting on the value of these tokens may not be significant. Many of these tokens are listed on other platforms, so investors and traders will still be able to buy and sell them elsewhere. Additionally, the delisting of these tokens could be seen as a positive thing by some investors, as it may help to weed out weaker projects and encourage stronger projects to take their place.
In conclusion, the delisting of six tokens by Bakkt may have come as a surprise to many in the cryptocurrency community, but it is not entirely unexpected. Bakkt’s decision to delist these tokens could be due to concerns around liquidity and regulatory compliance. The delisting could potentially have an impact on the value of these tokens, but it’s difficult to say how significant this impact will be. Ultimately, it will be up to investors and traders to decide whether they believe that these tokens still hold value, even after they have been delisted by Bakkt.
Bakkt, Intercontinental Exchange (ICE)’s cryptocurrency business, has recently announced the mass-delisting of several digital assets. This decision was made due to regulatory guidance and the latest industry developments. The full list of delisted tokens includes Aave, Avalanche, Bancor Network Token, Basic Attention Token, Chainlink, Chiliz, Compound Token, Cosmos, Curve DAO, Enjin Coin, Fantom, Filecoin, GALA, The Graph, Internet Computer, Loopring, Maker DAO, Republic, Stellar, Sushiswap, Synthetix, Texos, and Uniswap.
According to a spokesperson for the exchange, this decision was made as part of their regular coin listing review process, following the acquisition of Apex Crypto. The spokesperson also stated that their clients’ and their consumers’ best interests are their core commitment. Bakkt’s review process ensures those interests are best served when they contemplate the most up-to-date regulatory guidance and the latest industry developments.
Bakkt initially paid $55 million when the deal closed, and it will pay up to $145 million in Bakkt stock depending on Apex’s ability to hit financial targets through 2025. The acquisition of Apex Crypto was made to help Bakkt gain a foothold in the market and improve its quarterly revenues.
However, Bakkt has struggled to gain a critical mass of traders, with its quarterly revenues of $13 million last quarter, 10% below the average analyst estimate. This announcement of mass-delisting is part of Bakkt’s efforts to streamline its offerings and focus on more promising tokens.
Bakkt’s stock is up 3.45% year-to-date, but it has fallen nearly 40% over the last six months. The market has reacted negatively, with the delisted tokens experiencing significant price drops. Some industry analysts believe that this decision could hurt Bakkt’s reputation and its chances of gaining a competitive edge in the market.
Despite the negative reaction, Bakkt’s decision to mass-delist tokens is an attempt to comply with regulatory guidance and protect its clients’ best interests. With the constant changes and developments in the cryptocurrency industry, it is essential for businesses to keep up to date, make necessary adjustments, and protect the interests of their clients.
In conclusion, Bakkt’s recent mass-delisting of tokens is a result of ongoing regulatory guidance and industry developments. While this decision may negatively impact Bakkt’s reputation and chances of gaining a competitive edge, it is crucial for businesses to make necessary adjustments and adhere to regulatory guidance to ensure the best interests of their clients.
