The cryptocurrency market is dynamic, fast-moving, and often unpredictable. Therefore, one of the most pressing questions that both investors and project founders face is: Can a delisted cryptocurrency ever be listed again on an exchange?
The short answer is yes, but the process is complex, involves strict requirements, and depends largely on the exchange’s policies, regulatory conditions, and the performance of the project itself.
In this article, we will explore why cryptos get delisted, whether relisting is possible, the conditions required, examples from the past, and what this means for investors and developers alike.
What is Crypto Delisting?
Delisting refers to the removal of a cryptocurrency from a trading platform or exchange. Once delisted, users can no longer trade, buy, or sell that crypto on the platform. While delisting does not necessarily mean the end of the project, it does impact liquidity, visibility, and investor confidence.
Why Do Exchanges Delist Cryptos?
Exchanges aim to protect their users and maintain credibility in the market. When a project fails to meet required standards, exchanges may decide to delist it for the sake of safety and compliance.
Low Trading Volume
When a cryptocurrency shows little to no trading activity, exchanges often choose to delist it. This prevents the maintenance of “dead pairs” and allows the platform to allocate resources to more active markets.
Regulatory Pressure
Exchanges are required to follow strict national and international regulations. If a cryptocurrency does not meet compliance requirements, it risks removal to safeguard the exchange from legal consequences.
Security Concerns
Projects that face repeated hacks, expose vulnerabilities, or engage in fraudulent behaviour are considered unsafe. To protect users from potential losses, exchanges delist such assets immediately.
Team or Development Issues
The continuity of a project depends heavily on its development team. If the team disbands, stops updating the network, or becomes inactive, exchanges view the token as too risky and may delist it.
Community Scams or Fraudulent Practices
Tokens linked with scams, rug pulls, or misleading schemes quickly lose trust. Exchanges often take swift action to delist them in order to shield their community from harm.
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When Can a Delisted Crypto Be Listed Again?
Although rare, there are circumstances where a delisted cryptocurrency may return to an exchange. Relisting is not taken lightly, as exchanges must preserve trust and ensure that projects meet strict standards before being considered again.
Project Revival and Strong Development
Exchanges may reconsider relisting if the team behind a project shows renewed commitment. Consistent technological upgrades and active engagement with the community often signal a genuine revival that improves credibility.
Increased Market Demand
A cryptocurrency that regains popularity and demonstrates strong trading activity in decentralised exchanges or peer-to-peer markets may catch the attention of centralised platforms. Rising demand increases the chances of relisting.
Regulatory Compliance
Tokens that once failed to meet compliance requirements can work towards adhering to both local and international regulations. By fulfilling these obligations, they stand a better chance of being accepted again.
Partnerships and Ecosystem Growth
Exchanges may also look favourably on projects that build meaningful collaborations. Integration with DeFi platforms, adoption in blockchain applications, or partnerships with reputable businesses help establish long-term value.
Community Support
A strong and vocal community can influence relisting decisions. When a project shows positive change and gathers consistent support, exchanges may be more inclined to welcome it back.
Examples of Cryptos That Were Relisted
Although uncommon, certain cryptocurrencies have managed to make a return to exchanges after being delisted. These cases highlight that strong community support, renewed development, or market demand can revive a project’s standing.
Dogecoin (DOGE)
In its early years, Dogecoin was delisted by some minor exchanges because of very low trading activity. Over time, renewed hype, celebrity endorsements, and strong community support helped the token secure relisting on multiple platforms.
Stellar (XLM)
Stellar faced delistings from smaller exchanges during periods of inactivity. As the project matured and gained wider adoption, it successfully reappeared on several global trading platforms.
Ethereum Classic (ETC)
After the DAO hack in 2016, Ethereum Classic faced skepticism and was removed from a number of exchanges. Its revival, supported by steady development and market demand, eventually led to listings on major platforms worldwide.
These examples show that while relisting is difficult, it is achievable when a project demonstrates resilience and long-term value.
How To Relist A Delisted Cryptocurrency?
Every exchange has its own framework for relisting cryptocurrencies, but the steps usually follow a structured pattern. This process ensures that only credible and sustainable projects are allowed to return.
Application by the Project Team
Relisting usually begins with the developers or the foundation submitting a formal request. This shows intent and readiness to comply with the exchange’s requirements.
Due Diligence by the Exchange
Exchanges conduct thorough checks on legal, security, and technical compliance. This step helps determine whether the project has resolved previous issues.
Market Demand Evaluation
The likelihood of relisting improves if there is proven interest from traders. Exchanges carefully analyse whether the token will generate enough activity to justify its return.
Community Polls or Feedback
Some exchanges involve their users in the decision-making process. They may run surveys or allow community votes to measure interest in the token.
Technical Integration
Once approved, the exchange reintegrates the cryptocurrency into its systems. This includes updating wallets, ensuring smooth operations, and maintaining healthy liquidity for trading pairs.
Read More: What Is KYC in Crypto? A Simple Explanation!
Conclusion
A delisted cryptocurrency can make a return, but only if the right conditions are met. Projects that address compliance issues, rebuild strong community trust, and show genuine utility stand a better chance of being relisted. For investors, this can create renewed opportunities, but it is essential to approach such situations with caution and thorough research.
Exchanges also weigh the benefits of relisting carefully, as it can bring trading activity but may affect credibility if handled poorly. To navigate these complexities with confidence, investors can rely on KoinX, a platform that simplifies crypto tax compliance and portfolio tracking. Get started with KoinX today to stay updated, organised, and prepared for every stage of your crypto journey.
Frequently Asked Questions
How Does The Relisting Of A Crypto Impact Its Price?
The relisting of a cryptocurrency on a major exchange can have a very significant positive impact on its price. This is often referred to as the “relisting effect.” When an asset is relisted, it gains a fresh wave of exposure to a new and much larger pool of potential investors. The increased availability and liquidity can dramatically boost demand, leading to a sharp rise in its market value.
How Can A Project Team Increase Its Chances Of A Relisting?
A project team can take several proactive steps to improve its chances of relisting. The most critical actions involve addressing the initial reasons for the delisting. This includes working to boost trading volume and liquidity, perhaps through marketing campaigns or new partnerships. The team should also focus on robust, consistent development activity and maintain clear and transparent communication with its community and the exchanges.
What Happens To A User's Holdings After A Delisting?
When a cryptocurrency is delisted from an exchange, users are typically given a specific period to withdraw their holdings to an external wallet or another exchange where the asset is still tradable. The delisted assets remain in the user’s wallet on the exchange for a set amount of time, but all trading ceases. If the user fails to withdraw their funds before the deadline, the exchange may convert the remaining balance into another currency, often a stablecoin, or in some rare cases, the funds may be forfeited.
Is The Relisting Process Guaranteed If Issues Are Addressed?
No, the relisting process is not guaranteed even if a project team addresses all the initial issues that led to its delisting. Each exchange has its own strict criteria and discretion when it comes to listing and relisting assets. While resolving the root cause of the delisting is a crucial first step, it does not automatically mean the exchange will approve a new application.
