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Delisting

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Delisting is the general concept, both in finance and cryptocurrency, of removing a digital asset, stock, or token from an exchange where it is tradable. Although this may vary from one reason to another, delisting generally points to a big blow to the project or investor holding the asset.

What Is Delisting?

Delisting occurs when an asset no longer meets the listing standards of an exchange or when a project decides to withdraw its asset voluntarily. Common reasons for delisting include lack of trading activity, failure to maintain required financial standards, evidence of fraudulent activity, or strategic corporate decisions such as going private or merging with another company.

For investors, delisting means that the asset can no longer be traded on that particular exchange, making it harder to buy or sell. However, investors are typically given a specified timeframe to withdraw their funds before the asset is completely removed. In some cases, a delisted asset can still be traded on other platforms or over-the-counter (OTC).

While delisting can signal financial trouble or compliance issues for a project, it can also be a strategic move to restructure without public scrutiny. Understanding delisting helps investors make informed decisions and navigate the complexities of the financial and cryptocurrency markets.

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