Bakkt, a digital asset platform owned by Intercontinental Exchange (ICE), recently announced that it will be delisting two-thirds of the tokens it currently supports. This decision comes as a surprise to many in the cryptocurrency community, as Bakkt has been seen as a major player in the industry since its launch in 2018.
The delisting will affect 12 tokens in total, including some of the most popular cryptocurrencies such as Bitcoin Cash (BCH), Ethereum Classic (ETC), and Ripple (XRP). Bakkt has stated that the decision was made in order to focus on its core business of providing institutional-grade custody and trading services for Bitcoin (BTC).
In a statement released on its website, Bakkt explained that the delisting will take place on June 24th, 2020. The affected tokens will no longer be available for trading or storage on the platform, and any open orders will be cancelled. Customers who hold these tokens on Bakkt will need to withdraw them to an external wallet before the delisting date.
The announcement has sparked mixed reactions from the cryptocurrency community. Some see it as a sign that Bakkt is struggling to compete with other platforms that offer a wider range of tokens, while others believe that it is a smart move to focus on Bitcoin, which is still the most widely traded cryptocurrency.
One potential reason for the delisting is the regulatory uncertainty surrounding some of the affected tokens. For example, XRP is currently facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) over whether it should be classified as a security. By removing these tokens from its platform, Bakkt may be trying to avoid any potential legal issues.
Another factor could be the lack of demand for these tokens among institutional investors, which is Bakkt’s target market. While Bitcoin has seen growing interest from institutional investors in recent years, other cryptocurrencies have not seen the same level of adoption.
Overall, the delisting of two-thirds of its supported tokens is a significant move for Bakkt. It remains to be seen whether this decision will help the platform to achieve its goal of becoming the go-to destination for institutional investors looking to trade and store Bitcoin.
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