Search Inside Bitcoins

Bakkt Exchange Delists 23 Tokens – Will This Impact The Cryptocurrency Market?

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

BAKKT
BAKKT

Join Our Telegram channel to stay up to date on breaking news coverage

Bakkt, a popular crypto exchange, has decided to remove several cryptocurrencies and digital assets from its platform, including prominent decentralized finance (DeFi) tokens.

Bakkt Delists Crypto Tokens Amidst Regulatory Compliance in a Changing Crypto Landscape

The list of delisted tokens included Aave (AAVE), Avalanche (AVAX), Bancor Network Token (BNT), Basic Attention Token (BAT), Chainlink (LINK), Chiliz (CHZ), Compound Token (COMP), Cosmos (ATOM), Curve DAO (CRV), Enjin Coin (ENJ), Fantom (FTM), Filecoin (FIL), GALA (GALA), The Graph (GRT), Internet Computer (ICP), Loopring (LRC), Maker DAO (MKR), Republic (REN), Stellar (XLM), Sushiswap (SUSHI), Synthetix (SNX), Texos (XTZ), and Uniswap (UNI).

The decision to delist these tokens was influenced by regulatory guidance and evolving industry developments. Bakkt, following its acquisition of Apex Crypto and as part of its regular coin listing review process, has carefully considered the most up-to-date regulatory guidelines and industry trends to best serve the interests of its clients and their consumers.

Bakkt Apex

The acquisition of Apex Crypto, which closed on April 1, was a strategic move by Bakkt to shift its focus from retail to business-to-business (B2B) operations. The purchase price for Apex Crypto was initially $55 million, with the potential for an additional $145 million in Bakkt stock based on Apex’s financial performance until 2025.

Despite these developments, Bakkt has faced challenges in gaining market traction and a substantial user base. The exchange reported quarterly revenues of $13 million in the last quarter, which was 10% below the average analyst estimate. Consequently, Bakkt’s stock has experienced a decline of nearly 40% over the past six months, although it has seen a modest 3.45% increase year-to-date.

By adopting a B2B-focused strategy, Bakkt’s decision to delist specific tokens demonstrates its dedication to adhering to regulatory requirements and adapting to the dynamic cryptocurrency industry.

Bakkt’s Delisting Decision Under Scrutiny by XRP Community as They Demand Transparency

Bakkt’s recent decision to remove AAVE and several other tokens from its platform has triggered significant criticism and raised eyebrows within the Ripple(XRP) community. Members of the community have voiced their concerns, questioning the underlying motives behind the delisting and speculating about possible reasons behind it.

Some suggest that the move could be an attempt by Bakkt to create an atmosphere of fear, uncertainty, and doubt (commonly known as FUD) among investors and users. Others speculate that the delisting may be a direct response to regulatory warnings or concerns expressed by U.S. authorities.

SEC

These concerns have been amplified by the reference made by an XRP enthusiast on Twitter, who pointed to Gary Gensler, the current Chairman of the U.S. Securities and Exchange Commission (SEC). Gensler, a former professor at the Massachusetts Institute of Technology (MIT), previously taught courses on blockchain and money.

The Twitter user specifically highlighted one of Gensler’s lectures, Lecture 18, which discussed the classification of cryptocurrencies as securities. Interestingly, the lecture in question has since been removed from MIT’s online course catalog, leading to accusations of biased crypto regulation against Gensler.

Furthermore, the SEC’s handling of the legal battle with Ripple Labs has also come under scrutiny. John Deaton, a prominent attorney supporting XRP, has accused the SEC’s leadership of corruption in their dealings with Ripple Labs. Deaton alleges that the SEC intentionally withheld crucial documents and emails, which are vital for Ripple Labs to mount a robust defense in the ongoing legal proceedings.

The combination of these factors has fueled discontent within the Ripple and XRP community, as they question the fairness and transparency of Bakkt’s delisting decision, as well as the overall regulatory landscape surrounding cryptocurrencies.

Anticipating Short-term Impact and Long-term Market Resilience of Bakkt’s Token Delisting

The recent decision by Bakkt to delist the tokens is expected to have a short-term adverse impact on their prices and liquidity. With the delisting, some Bakkt customers may choose to sell their holdings or transfer them to other platforms, leading to potential price fluctuations.

However, it is important to note that in the long run, the overall cryptocurrency market may not experience significant consequences as there are numerous alternative exchanges and platforms available that support these tokens and offer comparable or even superior services compared to Bakkt.

Furthermore, Bakkt has left the door open for the potential relisting of some of these tokens in the future, on the condition that they meet the platform’s criteria and standards.

The company has expressed its commitment to closely monitoring market developments and gathering customer feedback to evaluate the addition of new or existing tokens to its platform based on a thorough evaluation process.

Bakkt

To facilitate a smooth transition, Bakkt has set a deadline of May 31, 2023, for affected customers to take appropriate action.

Customers are advised to either withdraw their tokens to personal wallets or transfer them to alternative platforms that support the delisted tokens. Bakkt has assured its customers that comprehensive instructions and guidance will be provided to assist them in completing these actions successfully.

It is vital for customers to be fully aware that failing to withdraw or transfer their tokens by the given deadline will result in permanent loss of access. Bakkt will cease support for these tokens and discontinue any related services.

Additionally, Bakkt has issued a warning to its customers, urging them to exercise caution and remain alert against potential phishing attempts or scams that may seek to exploit the situation and deceive users into disclosing their funds or personal information.

While the delisting decision may create initial disruption, the dynamic nature of the cryptocurrency market offers various alternatives and opportunities for users to continue their engagement with these tokens.

Bakkt’s commitment to ongoing evaluation and customer feedback ensures that its platform remains adaptable to market demands and regulatory requirements, ensuring the best possible experience for its user base.

Read More:

Join Our Telegram channel to stay up to date on breaking news coverage

Read next