Definition
The term delisting refers to the removal of an asset from an exchange, such as removing a cryptocurrency from a cryptocurrency exchange. This usually happens when a project can no longer meet the listing standards of a crypto exchange.
Understanding the term
Delisting refers to the removal of any asset from an exchange as a result of noncompliance with listing requirements. In the context of cryptocurrencies, a cryptocurrency can get delisted from an exchange if there is a lack of regular trading activity, protocol development is absent, a faulty network or smart contract unreliability, or fraudulent activity.
When an asset has been delisted, it can no longer be purchased or sold on an exchange. The same asset can potentially be traded in other exchanges where it has not been delisted. Cryptocurrency exchanges keep the withdrawals for the delisted asset open for a specified period of time. This allows users to withdraw existing funds kept on the exchange even though trading is no longer available for the particular asset.
Takeaway
Delisting can refer to the removal of cryptocurrency from an exchange, making it unavailable for trading or purchasing. All the asset’s trading pairs are removed once they are delisted.