Binance Delists 5 Altcoins in First Week of July: Warning for Underperforming Projects
Binance, the world’s largest cryptocurrency exchange by trading volume, has announced that it will delist five altcoins from its platform on July 4, 2025, including: Stella (ALPHA), Biswap (BSW), Komodo (KMD), LeverFi (LEVER), and LTO Network (LTO). This is one of Binance’s largest asset purges since the beginning of the year, reflecting its strategy of tightening standards for crypto projects that are underperforming or lacking in significant progress.
Reasons for Delisting
In the official announcement, Binance said the decision was the result of a regular review of listed tokens. The exchange uses a multi-dimensional set of criteria to determine each asset’s eligibility to remain listed. Including:
Commitment and performance of the project development team
Technical progress and level of innovation
Trading volume and liquidity
Community acceptance
Security status, technical vulnerabilities
Legal compliance in relevant jurisdictions
According to Binance, when a token no longer meets these criteria, or cannot adapt to the rapid changes in the market, the exchange will conduct a deeper assessment and proceed to delist if necessary.
Timeline and technical impact
Spot trading for ALPHA, BSW, KMD, LEVER and LTO will officially end at 03:00 UTC on July 4, 2025.
Token deposits will end at 03:00 UTC on July 5, 2025.
Token withdrawals will be supported until September 3, 2025.
Related products such as Simple Earn, Dual Investment, and Binance Gift Card will no longer support the above tokens.
Binance also noted that futures contracts related to these tokens are not affected, but may adjust their risk management mechanisms during periods of high volatility without prior notice.
Market Reaction: LTO and KMD Plunge the Most
Immediately after the announcement, the market recorded strong volatility in related tokens. KMD and LTO were the two names most heavily affected, with prices plunging by 50% and 42.8% respectively in the first few hours. Although they recovered slightly later, their current value is still 15-17% lower than before the announcement.
KMD bottomed at $0.041, then recovered to $0.068, but is still down more than 17% compared to the same time before.
LTO, which has lost 82.8% of its value in a year, continues to fall sharply, reflecting a loss of investor confidence.
ALPHA and BSW also saw a drop of around 15–17%, but recovered quite quickly, with BSW in particular rising 28.6% in the next trading session.
LEVER was the least affected token, falling only 7.8% and quickly recovering with an increase of 8.6%.
Long-term impact: A warning message to altcoin projects
Being delisted from Binance is not simply a loss of a major trading market, but also a loss of liquidity, visibility, and access to new investors. This often leads to a chain reaction, including sell-offs, loss of community confidence, and even project closure.
This pattern has been repeated many times in Binance's history, where delisting announcements have led to massive price drops for mid- and small-cap altcoins. This has also raised questions for young crypto projects about their long-term development strategies, transparency, and community engagement.
Conclusion
This delisting of 5 altcoins is a clear move by Binance to maintain a quality, transparent, and efficient trading environment for users. At the same time, it is also a strong warning signal to project development teams that listing is not the destination, but only the starting point of a process of maintaining value and reputation.
For investors, this is a necessary reminder of the importance of closely monitoring the status of projects, as well as diversifying investment portfolios to avoid risks from unforeseen shocks such as delisting. In a rapidly evolving and ever-changing market, flexibility and insight are the keys to survival and growth.