Binance Announces New Listing and Delisting Mechanics. Zcash (ZEC) Is the First Token to Be Axed

Binance recently introduced its new listing and delisting mechanics. The new feature allows the community to vote in the process. However, its decision to include Zcash (ZEC) in the chopping block riled up the cryptocurrency community.

Binance recently introduced its new listing and delisting mechanics, which will involve the community in the process. The platform stated that it will be including Zcash (ZEC), JasmyCoin (JASMY), and FTX Token (FTT) in the poll.

What Happened: The world’s largest crypto exchange revealed that tokens which lack product development updates, show inactivity from their core team and community, inflate their supply without due process, and indicate significant risk to users are automatically placed in its Monitoring Zone.

From there, the exchange assesses which ones will be included in its delisting poll where the community will pick which one will get axed or saved. The exchange's exact mechanics in its delisting poll leave more questions than clarity at this point, but the company noted that the community vote is not the sole deciding factor in the procedure. Ultimately, Binance will have the final say on the matter based on its “official review processes and standards.”

Zcash founder Zooko Wilcox called out Binance and its CEO Richard Teng for their move while alluding to his Big Brother approach to an episode of Netflix's sci-fi thriller Black Mirror.

"This is an open letter to Richard Teng, CEO of Binance, and the Binance team, to plead with you to make a small change in your plans, which will make a huge difference to many people," Wilcox said in a plea on X, formerly Twitter.

He added that Zcash is not some dead coin or linked to scams, and it was instrumental in the creation of the zk-SNARK (Zero-Knowledge Succinct Non-interactive Argument of Knowledge) technology that Binance currently utilizes to safeguard its customers.

"We are also making the next generations of technologies that will benefit Binance ten years from now," the founder said.

The Zcash founder urged Teng to support the privacy-centric advocacy of their project, which is similar to what Coinbase (NASDAQ:COIN), Gemini, and Kraken are doing.

His grievance even reached Digital Currency Group founder and CEO Barry Silbert, who later reposted Wilcox's plea.

Some recommended that Binance should delist BNB instead because it lacks utility outside its platform.

"Isn't it ironic that a coin with no use case is being threatened with delisting while a coin with vast use cases and technology is being targeted for delisting?" one user said.

Those who approved Zcash's potential delisting believe it’s just the consequence of the project team’s refusal to comply with regulations.

"It's no secret that Zcash has been having issues with regulators lately, and they've been given ample opportunity to rectify the situation," another user noted. "Their lack of response or cooperation is ultimately leading to this potential delisting."

ZEC is currently trading at $30.27, down 5.58% in the 24-hour period, according to Benzinga Pro. The crypto asset hit a high of $32.33 and a low of $30.27.

What Next: Binance is polling the community on which of the three tokens—Zcash, JasmyCoin, and FTX Token—should be delisted from its platform. The poll will conclude on August 8 at 11:00 a.m. (ET).

The exchange's decision to include Zcash in the chopping block has riled up the cryptocurrency community, with many expressing their displeasure at the prospect of seeing the token delisted.

The move is part of Binance's new listing and delisting mechanics, which will see the community vote on which tokens should be delisted from the platform. The tokens that are being considered for delisting are Monero, FIRO (formerly Zcoin), MobileCoin, and Zcash.

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The platform will then make the final decision on which token to delist, taking into account the community vote and its own "official review processes and standards."

"@binance is putting Zcash up for a community vote to delist. This is the integration of crypto into Web3, which is a broader vision for the decentralized web, that Count Dante discussed in his analysis of the crypto exchange's new listing and delisting mechanics.

"@binance is putting Zcash up for a community vote to delist. This is the integration of crypto into Web3, which is a broader vision for the decentralized web, that Count Dante discussed in his analysis of the crypto exchange’s new listing and delisting mechanics.

The crypto exchange giant is known for its varied selection of tokens, catering to diverse investment preferences. However, Binance is now modifying its listing procedures to align with evolving regulatory demands and introduce a community engagement element.

Highlighting the initiative on X, Binance stated, "We're introducing new listing and delisting mechanics, which will involve the community in the process. Up next in the Monitoring Zone are Monero, FIRO (formerly Zcoin), MobileCoin