Exchanges are removing tokens and trading pairs at a record pace this year, according to crypto market data provider Kaiko, in the midst of weaker appetite and regulatory pressures.
Thus far in 2023, more than 3,400 tokens or trading pairs have been delisted or sufficiently inactive for a likely removal, according to data compiled by Kaiko. This is the highest amount recorded going back to data available in 2016. It is also 15 percent higher than all of 2022 and double the amount of 2021.
There are a number of reasons for the delistings. Firstly, many exchanges aggressively listed new tokens during the last bull market before reversing in a bear market due to multi-year lows in liquidity and trading volumes. Secondly, certain regulators have been tightening oversight, such as the US Securities and Exchange Commission which designated 19 tokens as unregistered securities in lawsuits against Coinbase and Binance.
