Bybit is delisting 15 perpetual contracts starting October 21, including tokens like OSMO, FIS, and SKATE against USDT, due to low liquidity and risk management needs. This move targets small-cap assets with insufficient trading volume to maintain stable derivatives markets.
-
Delisting affects BDXN, NODE, AGT, FIS, SKATE, FHE, GORK, TANSSI, TOKEN, OSMO, SCAU, DMC, MAJOR, FRAG, and SWELL perpetual contracts against USDT.
-
The process occurs in three phases to allow users time to close positions and minimize disruptions.
-
Most affected tokens show 24-hour volumes under $10 million, highlighting liquidity issues per Bybit’s internal data.
Discover why Bybit is delisting 15 perpetual contracts in 2024, focusing on low-liquidity tokens like OSMO and FIS. Learn impacts on traders and exchange strategies. Stay informed on crypto derivatives—read now for expert insights.
What is Bybit Delisting Perpetual Contracts?
Bybit delisting perpetual contracts refers to the exchange’s decision to remove trading pairs for specific cryptocurrencies against USDT, effective from October 21 in phased windows. This action targets 15 underperforming contracts, primarily involving low-liquidity, small-cap tokens that fail to meet the platform’s standards for market depth and risk control. Bybit, as the world’s second-largest crypto exchange, aims to streamline its derivatives offerings by eliminating assets that distort funding rates and increase liquidation risks, ensuring a more robust trading environment for users.
Why Are These Specific Tokens Being Delisted?
Bybit’s delisting criteria emphasize liquidity thresholds and risk management protocols, as outlined in the exchange’s official policy documentation. Tokens such as Osmosis (OSMO) and StaFi (FIS), once prominent in DeFi staking ecosystems, now exhibit 24-hour trading volumes below $10 million, according to aggregated market data from platforms like CoinMarketCap. Similarly, Skate and Tanssi, remnants of the 2021-2022 metaverse and GameFi hype, have dwindled to micro-cap status with negligible derivatives activity. Other assets, including NODE and MAJOR from the Toncoin ecosystem, maintain footprints only on niche venues, lacking the broad market support needed for perpetual futures viability.
This selective purge addresses broader market dynamics where low-liquidity contracts can amplify volatility. For instance, during volatile periods, thin order books lead to exaggerated price swings, complicating hedging strategies for institutional traders. Bybit’s internal metrics reveal that these contracts often result in “out of order” liquidations, where positions close prematurely due to insufficient depth. Experts, including derivatives analyst Sarah Chen from Crypto Research Institute, note that “exchanges like Bybit must prioritize high-quality listings to safeguard user funds and maintain competitive edges in a maturing crypto landscape.” Data from Bybit’s recent quarterly report underscores this, showing daily spot turnover at $3.5 billion and total assets under management reaching $11.5 billion, underscoring the exchange’s capacity to focus on liquid markets.
The decision also echoes lessons from recent market events. On October 10, low-liquidity perpetuals contributed to the so-called “Black Friday” episode, where cascading liquidations pressured the broader ecosystem. Bybit’s proactive delisting could mitigate similar future risks, aligning with industry trends observed in reports from regulatory bodies like the Financial Conduct Authority, which stress sound risk practices in crypto derivatives trading.
Phasing the delistings into three windows—beginning October 21—provides users with structured timelines: initial warnings, position closure periods, and final removals. This approach minimizes disruptions, allowing traders to migrate to more viable alternatives without abrupt halts. COINOTAG analysis of similar past delistings, such as those in early 2024, indicates that affected users typically reallocate to established pairs like BTC-USDT or ETH-USDT, preserving overall market participation.
Frequently Asked Questions
What Happens If I Hold Positions in Bybit’s Delisted Perpetual Contracts?
If you hold open positions in the affected perpetual contracts like OSMO-USDT or FIS-USDT, Bybit will notify you via email and platform alerts starting October 21. You must close positions within the designated windows to avoid automatic liquidation at market rates, potentially incurring fees or losses from slippage in low-liquidity environments. Transferring to spot markets or other exchanges is recommended for asset preservation.
How Will Bybit’s Delisting Impact Crypto Derivatives Trading Overall?
Bybit’s delisting of these 15 low-liquidity perpetual contracts will likely enhance overall derivatives trading stability by reducing exposure to volatile, small-cap assets. Traders can expect tighter funding rates and fewer liquidation anomalies in remaining pairs, fostering a healthier ecosystem. As voice searches for “Bybit trading updates” grow, this move positions the exchange to better serve high-volume participants, per industry benchmarks from 2024.
Key Takeaways
- Liquidity as a Core Criterion: Bybit prioritizes tokens with sufficient market depth, delisting those under $10 million in daily volume to prevent funding rate distortions and protect users.
- Risk Mitigation Post-“Black Friday”: The October 10 market turmoil highlighted vulnerabilities in thin contracts, prompting this cleanup to avoid future systemic pressures, as evidenced by Bybit’s $11.5 billion asset base.
- Strategic Focus on Viable Assets: Exchanges should regularly audit listings; users are advised to monitor liquidity metrics via tools like on-chain analytics for informed trading decisions.
Conclusion
In summary, Bybit’s delisting of 15 perpetual contracts, including prominent names like OSMO and FIS, underscores a commitment to liquidity-driven perpetual contracts management and robust risk protocols in the crypto derivatives space. By targeting small-cap tokens with waning activity, the exchange reinforces its position as a leader in secure trading environments. As the crypto market evolves, staying attuned to such updates will be crucial for traders; consider reviewing your portfolio against Bybit’s criteria today to navigate upcoming changes effectively. Published by COINOTAG on October 21, 2024. Last updated: October 21, 2024.
