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Personal · Crypto, Trading and Commodities · Cryptocurrencies · Crypto Trading · Crypto Delisting

Can crypto rates be very unstable/highly volatile during delistings?

Delistings can lead to greater volatility especially if more than one exchange delists the same token at the same time. The two main reasons for this are:

  • A delisting reduces the available liquidity in a token (fewer places to trade it). This can lead to the price being more sensitive to buying and selling pressure
  • The announcement of a delisting can create negative sentiment among investors which would want to sell their holdings quickly. This can lead to a sudden drop in price