A recent investigation by South Korea's Financial Supervisory Service (FSS) revealed that the country's five largest cryptocurrency exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—delisted 34.9% (517 out of 1,482) of all listed cryptocurrencies between January 2018 and August 2024.
Key Findings from the FSS Report
- Average Listing Duration: Delisted coins remained available for trading for an average of 748 days before removal.
Short Lifespans:
- 54% were delisted within 2 years.
- 20.7% survived less than 1 year.
- The shortest-lived asset, DigixDAO (DGD), was delisted after just 77 days (January 2018).
- Market Comparison: Unlike the volatile crypto market, zero stocks were forcibly delisted from South Korea's traditional exchanges during the same period.
Why Do Exchanges Delist Cryptocurrencies?
Exchanges typically remove assets due to:
- Low liquidity or trading volume.
- Regulatory non-compliance (e.g., failure to meet updated standards).
- Security concerns (e.g., vulnerabilities, hacks).
- Project abandonment (developer inactivity or scams).
👉 Learn how leading exchanges evaluate crypto listings
FAQs About Crypto Delistings
Q: How does delisting affect investors?
A: Holders of delisted coins often face lost liquidity—they may only trade via peer-to-peer (P2P) markets or decentralized exchanges (DEXs). Some exchanges allow withdrawals but disable deposits.
Q: Can delisted coins return to exchanges?
A: Yes, if the project addresses the exchange’s concerns (e.g., proving renewed development or compliance). However, relisting is rare.
Q: How can traders avoid buying soon-to-be-delisted coins?
A: Monitor exchange announcements and prioritize coins with high volume, active development, and regulatory clarity.
👉 Explore top-rated cryptocurrencies with stable exchange support
The Bigger Picture
South Korea’s strict crypto oversight contrasts with its traditional stock market stability. While regulators encourage investor protection, the report underscores crypto’s inherent high-risk, high-reward nature.
Pro Tip: Diversify holdings across established projects and stay updated on exchange policies to mitigate delisting risks.