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OKEx token delistings, round 3 →

November 28, 2018

OKEx:

To create a robust trading environment and offer the best trading experience to our users, we will delist several TRADING PAIRS with weak liquidity and trading volume according to the OKEx Token Delisting/Hiding Guideline.

Delisted tokens, along with their respective market cap rankings include – 1ST (459), AMM (1109), ATL (820), AVT (698), BRD (137), CAG (659), CBT (719), CIT (1836), DAT (735), DENT (150), DNA (680), DNT (302), EVX (383), GNX (351), ICN (159), KEY (279), LA (428), LEV (740), MAG (1857), MTL (255), MVP (735), NGC (312), OAX (516), OST (236), QVT (1596), RDN (202), REN (218), REQ (150), RNT (199), SAN (174), SHOW (1823), SNGLS (285), SPF (1001), SUB (156), TRA (N/A), UKG (440), VEE (278), and WRC (927).

The majority of these tokens can be classified as s***coins, cryptos that have very little demand – these delistings don’t surprise me. The delistings that do surprise me are the coins that rank higher than 200 in terms of market cap – BRD, DENT, ICN, REQ, RNT, SAN, and SUB. Here’s a quick look at the market cap to 24-hour trading volume multiplier for these coins.

  • BRD: 20,713,812/60,379 = 343x
  • DENT: 18,500,492/770,031 = 24x
  • ICN: 17,492,584/8,383 = 2,086x
  • REQ: 18,360,543/2,444,093 = 7.5x
  • RNT: 12,423,939/243,014 = 51x
  • SAN: 15,475,269/86,063 = 180x
  • SUB: 17,859,556/161,965 = 110x

For comparison, here are the market cap to volume calculations for the top three cryptocurrencies  – BTC, XRP, and ETH.

  • BTC: 69,772,425,346/6,412,798,840 = 10x
  • XRP: 15,032,647,237/670,421,120 = 22x
  • ETH: 11,864,281,308/2,541,170,913  = 5x

I like to use this multiplier to gauge the value of a cryptocurrency against itself. In my experience, cryptocurrencies with an average multiplier that is less than 20-25x have adequate and reliable trading volume to support the price. In my opinion, cryptocurrencies that have multipliers higher than 50x are severely overvalued and do not have adequate volume and interest to support the price. In most cases, cryptocurrencies with high multipliers have extremely thin order books with less than 10 BTC sitting between the spot price and “zero”. With this in mind, the cryptocurrencies from OKEx’s delisting that resemble houses of cards are BRD, ICN, RNT, SAN, and SUB, and I wouldn’t be surprised to see these coins delisted on other exchanges in the near future.


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