Cryptocurrency exchanges often have to make tough decisions. In a lot of cases, that means deciding which currencies can be traded and which will not. Even removing dozens of trading markets is part of the ongoing process. Poloniex has confirmed it will remove over a dozen different markets, primarily due to low or non-existent trading volume.
Multiple XMR Pairs are now Gone
One has to commend Poloniex for making a bold choice several years ago. The company introduced additional base trading pairs, with Monero being the biggest addition. As a result, various currencies, tokens, and assets could be traded against XMR directly. It was always a risky move, as altcoins are simply not living up to expectations. As such, everyone knew the XMR-based trading pairs would be removed sooner or later.
In recent communication, Poloniex confirmed that is exactly what will happen. Litecoin, Dash, Zcash, Maidsafe, NXT, and Bytecoin will no longer be allowed to be traded against XMR. None of these pairs generated any real volume to speak of, although it showed things could be done differently compared to other trading platforms. Unfortunately, it seems safe to assume this experiment by the company is now classified as somewhat of a failure. There is also the ongoing scrutiny by regulators regarding privacy-oriented altcoins like Monero. That could be another factor to take into consideration.
A Steep Decline in ETH Markets
As part of the Poloniex announcement, it is quite apparent there will be cutbacks in the ETH markets as well. In fact, this is where some of the biggest surprises can be found. Removing ONG/ETH and QTUM/ETH is pretty surprising, as these trading pairs can be found on other exchanges as well. The removal of LSK, GNT, MANA, STEEM, LOOM, SNT, CVC, KNC, GAS, and BNT will not necessarily make too much of an impact at this time. Most of these tokens are associated with projects which are down by over 85% in terms of ROI.
The following pairs will be removed:
LTC/XMR, DASH/XMR, ZEC/XMR, MAID/XMR, NXT/XMR, BCN/XMR, LSK/ETH, GNT/ETH, MANA/ETH, QTUM/ETH, STEEM/ETH, OMG/ETH, LOOM/ETH, SNT/ETH, CVC/ETH, KNC/ETH, GAS/ETH, BNT/ETH, LOOM/USDT, SNT/USDT, KNC/USDT, BNT/USDT, FOAM/USDC
— Poloniex Exchange (@Poloniex) August 15, 2019
Ethereum was another base trading pair added by this exchange a long time ago. It is good to see exchanges experiment with the different options on the market. Even so, one has to wonder how much of a demand there is to pretty much trade every ERC20 token against Ethereum. A lot of these projects are on their way out after failing to make a lasting impression. It appears DEXes will play an integral role in this regard. They allow for such trading pairs without any issues, although most of these pairs won’t generate too much volume.
Stablecoin Victims to Note
As stablecoins continue to make their mark on the cryptocurrency industry, they have become go-to base trading currencies for a lot of exchanges. In the case of Poloniex, both USDT and USDC are such base currencies. It now seems the company will remove FOAM/USDC, which should not make much of an impact. Why such random tokens can be traded against an up-and-coming stablecoins remains a difficult question to answer.
In terms of USDT trading, there a fair few changes. LOOM, SNT, KNC, and BNT are all being removed from this base trading pair moving forward. This only confirms markets such as LOOM, KNC, and BNT are not succeeding in making their mark on the industry. It has been a tough 18-month period for all markets. Some of those might never recover from that onslaught. That is not necessarily a bad thing either.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.