“These special treatment rules focus on the delisting process of projects listed with KuCoin exchange. Project in the risk of being delisted will be put in a “Special Treatment” or “ST” category and subject to mandatory review in a certain period of time.” Read a statement on the KuCoin’s website. The altcoins on special treatment will be given time to redeem themselves although the exchange did not specify the amount of time the altcoins will be on the treatment.
The move by KuCoin will alert those who have invested in different altcoins that the coins are trending on a dangerous line risking to be delisted. The investor will then have enough time to re-evaluate their connection with the altcoins.The KuCoin cryptocurrency exchange also has its own coin called KuCoin
To help identify altcoins on special treatment, a unique sticker will be placed on the coin’s symbol throughout the observation period.
Some of the reasons that will call for special treatment include if the altcoin: has a prolonged negative trading volume, a negative opinion by company auditor, a likely cease of business activities for 3 months, etc.
KuCoin’s move comes barely two months after another cryptocurrency exchange, Bittrex, abruptly delisted more than 80 altcoins citing liquidity issues. Some altcoins on exchanges, especially those that are not popular do not attract a good number of transactions for the exchange to keep balanced books of account.
In the recent past, the United States Securities and Exchange Commission has intensified its watch on cryptocurrency exchanges. Others who have been actively involved in regulating cryptocurrency exchanges is the New York Attorney General who in mid last month sought an explanation from major cryptocurrency exchanges of how they protect their customers against internal and external attacks, how they operate, how they handle conflicts of interests, etc.
With KuCoin putting underperforming altcoins on special treatment, do you think the not-so-popular altcoins will have to intensively campaign for the popularization of their coins?
Let us know in the comments section below.