Binance Causes Brutal Crash for Numerous Altcoins After a Single Major Announcement

Some of the involved cryptocurrencies nosedived by over 80% after the disclosure.

The world’s largest cryptocurrency exchange announced a major delisting, following which most affected cryptocurrencies collapsed by double digits.

Prior to that, the firm temporarily suspended certain withdrawals and deposits and implemented additional amendments to its platform.

The Binance Effect

Binance Alpha (a dedicated platform inside the exchange’s ecosystem that showcases early-stage crypto projects) removed 21 altcoins, including WorldShards (SHARD), FreeStyle Classic (FST), Alliance Games (COA), BNB Card (BNB Card), MilkyWay (MILK), Hyperbot (BOT), and many more.

The company clarified that the sale of the impacted tokens will still be allowed after the removal. At the same time, it warned users to conduct proper research before trading the aforementioned coins to avoid any scams and protect their funds.

As is typically the case, many of the delisted digital assets headed south shortly after the disclosure. After all, Binance is the largest crypto exchange, and withdrawing support usually results in reduced liquidity, diminished availability, and a damaged reputation. MILK and SHARD fell by 6-7% daily, whereas FST and BNB Card nosedived by 70-80%.

A similar reaction was observed in late 2025 when Binance disallowed all services with Kadena (KDA), Flamingo (FLM), and Perpetual Protocol (PERP). Similar to FST and BNB Card, the involved altcoins crashed by double-digit percentages immediately after the news broke.

Other Recent Efforts

Earlier this week, the exchange supported an upgrade and temporarily paused withdrawals and deposits on the Ethereum network. The process was expected to take about an hour, after which operations were supposed to resume smoothly.

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This is a routine procedure that Binance has executed flawlessly many times before. Over the years, it has taken similar measures to support upgrades across various ecosystems, including Cardano, BNB Smart Chain, and others.

Prior to that, Binance issued numerous listing announcements focused on U (United Stables) – a stablecoin launched last year and pegged to the American dollar. In January, it expanded the list of trading choices offered on its Spot section with the BNB/U, ETH/U, KGST/U, and SOL/U pairs.

In February, it added XRP/U, SUI/U, ASTER/U, and PAXG/U, while earlier this month it opened trading for AVAX/U, LINK/U, LTC/U, PAXG/U, and ZEC/U.