What is Delisting and Why It Happens

Delisting occurs when an exchange removes a token from trading and deletes its ticker from the platform. The reasons can vary, such as failure to meet market-making requirements, if the project is a scam, or if the project becomes inactive. It is crucial to prevent delisting to maintain investor confidence, ensure liquidity, and keep trading activity high.

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Key Metrics to Monitor

1. Spread %

Most exchanges, such as Bitrue, require the spread to be 1.5% or lower to maintain a healthy trading environment.

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2. Market Depth

Market depth at a 2% price variance should exceed $20,000. Adequate market depth ensures smooth trading without large price fluctuations.

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3. Daily Trading Volume

A minimum daily trading volume of $100,000 is often required. Some exchanges are stricter than others, so always check individual requirements.

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Special Cases to Consider

Some exchanges do not monitor trading volume closely, meaning even a 0-volume token may remain listed. However, failure to meet spread % and market depth requirements can lead to delisting or removal from websites like CoinMarketCap and CoinGecko.

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Tips to Avoid Delisting

  • Regularly monitor your spread and market depth.
  • Increase liquidity and daily trading volume through market makers.
  • Review exchange-specific MM requirements before listing with your market making team.

Following these steps helps your project stay compliant and reduces the risk of delisting.

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Conclusion

Understanding and monitoring key metrics like spread %, market depth, and daily trading volume is essential for keeping your token listed. Regular checks and proactive management will help your crypto project thrive on any exchange.

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