Binance Delisting Spurs 25% Collapse in Komodo (KMD) Price
Binance announced on June 26, 2025 that it will delist Komodo (KMD) and four other tokens—Stella (ALPHA), LeverFi (LEVER), Biswap (BSW) and LTO Network (LTO)—from all spot trading pairs effective July 4, 2025. The exchange cited its periodic review process, which evaluates trading volume, liquidity and project activity, as the reason for the Binance delisting. Following the announcement, KMD’s price plunged over 25% from around $0.085 to lows near $0.06, while daily trading volume surged 400% to $5.68 million amid panic selling. LTO fell 27%, LEVER dropped 9% and ALPHA declined 6%, whereas BSW bucked the trend with a 50% gain. Binance has urged users to cancel open orders and withdraw tokens by October 4, 2025. The Binance delisting highlights the liquidity risks small-cap altcoins face when removed from major exchanges.
Bearish
The Binance delisting triggered immediate panic selling and a sharp liquidity drain for Komodo and other small-cap tokens. Similar past delistings have led to sustained downward pressure as traders lose a primary trading venue and confidence erodes. In the short term, expect heightened volatility and further price declines as holders rush to exit before withdrawal deadlines. Long term, KMD may struggle to regain liquidity and market support without relisting on major exchanges, keeping downward pressure on its valuation.