Huobi delists 33 tokens in one day citing trading risk, low volume

According to a Jan. 11 announcement, cryptocurrency exchange Huobi said that it would delist 33 tokens consisting of tickers ABT, ATP, APN, AST,DIE, DHT, DFA, EDEN, GEAR, HC, INDI, IOI, INV, IRIS, GCOIN, GOF, KMA, MTA, NAS, OPUL, PEARL, PRIMATE, QASH, SMT, SLC, SKU, SOC, STC, TALK, VALUE, WHALE, WILD and YAM. Effective Jan. 16, the aforementioned tokens will cease trading and be delisted permanently. In explaining the decision, Huobi wrote that most of the tokens violated Section 17, Rule 1, and Section 17, Rule 2, of the Huobi Token Management Rules, which states:

“Huobi reserves the right, based on the severity of the incident, to hide or cease trading in accordance with the following events: 1) [Tokens] Labeled with “ST” warning and not canceled within 30 days. 2) [Tokens] That do not meet the requirement of having $50,000 in daily trading volume.”

According to Huobi, an “ST” warning is issued for a token based on the following series of triggering events:

1. “Project teams fail to update the quarterly report on time or fail to update the semi-monthly reports for twice in succession as scheduled even fail to update it within 7 days after being notified to do so;”
2. “In 15 consecutive days, none of the trading pairs of the tokens has an average daily trading volume larger than $50,000 or other equivalent tokens.”
3. “It is considered necessary to mark “ST” through the comprehensive evaluation of inquiry, regular review, special investigation or on-site investigation;”
4. “Other circumstances identified as serious violations of the Regulations by Huobi.”

In particular, Huobi stated that HC (Hcash) was delisted because it violated Section 17, Rule 17 of the Huobi Token Management Rules. Rule 17 indicates a “severe violation of regulations or other high-risk scenarios.” Huobi is currently ranked 17th in the world by total 24-hour trading volume. Cointelegraph previously reported that doubts mounted over the exchange’s future amidst layoff rumors.