Bittrex Moving to Delist Wallets; Users Have Until End of March to Withdraw Funds

Once “the place” to be for those raising altcoins through ICOs to be listed, Bittrex is slowly, but steadily, removing wallets from its exchange.

The date is fast approaching for the removal of almost 100 wallets from the Bittrex exchange. The removals come as the space adjusts to the increasing scrutiny from the U.S. Securities and Exchange Commission.

By the end of the month, Bittrex plans to remove 82 wallets from its exchange, as well as several tokens. Over a staggered schedule, several have already been removed.

The statement

Bittrex announced that it was removing coin wallets earlier this month. In a statement, it said:

“Occasionally, there are circumstances that lead Bittrex to remove a coin’s wallet or market from the Bittrex Exchange. These actions are taken to ensure customers have access to digital tokens that continue to meet our strict coin listing criteria and have a properly functioning blockchain and wallet.”

The following markets will be removed on March 23rd, 2018:

BTC-PDC

BTC-GCR

BTC-CLUB

BTC-CPC

To see the list of wallets being removed, click here.

What happens next?

Once the wallets are removed, the tokens will no longer be recoverable. Therefore, it is imperative that users withdraw their coins before March 30, 2018, in order to keep them.

Bittrex has put an asterisk (*) next to the coins that have broken blockchains or wallets that will not allow for withdrawals.

It points out that for these wallets, the inability to withdraw from the balance is not the fault of the Bittrex Exchange platform. Instead, the problem is due to the “underlying Blockchain or wallet associated with that coin.”

Bittrex stunned the crypto space last fall when it announced that it would delist five markets on Friday, Oct. 13.

Other factors

While Bittrex chalks up its delisting moves to making room for tokens that meet its strict listing criteria, observers note the influence of the SEC as a factor as well. The regulatory body’s chairman, Jay Clayton, has warned for months that bad actors could prey on retail investors through ICOs. In the fall of last year, the SEC issued guidelines specific to trading platforms like Bittrex’s.

In those guidelines, the SEC stated:

The SEC may suspend trading in a stock when the SEC is of the opinion that a suspension is required to protect investors and the public interest. 

The concern is that many of these ICOs are simply pump-and dump-schemes. Pump-and-dump schemes occur when market manipulators buy up an asset or a token and generate fake hype (pump) to attract investors, only to sell (dump) the tokens to them at inflated prices.

Sign of the times

There was a time when U.S-based Bittrex was the place to be for altcoins. Those launching ICOs aspired to be listed on the exchange.

While many of these altcoin holders may be displeased with having to give up their tokens, in the long run, this could be good for the space.

There are more than 1,500 token available today, by some estimates, which is daunting, to say the least. Many agree that as this number is whittled down, the tokens that are truly worth trading will stand out more.

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