Bithumb Places Blocery (BLY) on Delisting Watchlist; Deposits Suspended
Bithumb, a major South Korean cryptocurrency exchange, has placed Blocery (BLY) on its delisting watchlist and suspended deposits for the token effective 07:00 UTC. Trading remains open for now while Bithumb conducts a review under its standard delisting protocol, which evaluates technical stability, trading volume, development activity and regulatory compliance. Blocery is a blockchain project focused on the food supply chain; BLY is its utility token. On-chain metrics (active addresses, transaction volume) and repo activity reportedly flagged potential weaknesses. Holders on Bithumb can still trade or withdraw BLY but cannot deposit new tokens. The watchlist period typically runs 30–45 days, giving the project time to remediate issues and respond to the exchange. The action reflects tighter South Korean regulation of VASPs and a broader industry trend toward stricter listing standards. Traders should review Bithumb’s official notice, consider withdrawing or rebalancing positions, and monitor Blocery’s communications. Key keywords: Bithumb, Blocery, BLY, delisting watchlist, deposit suspension, South Korea regulation.
Bearish
Placing BLY on a delisting watchlist with immediate deposit suspension is a negative catalyst for the token. Deposit suspension isolates exchange liquidity and signals that the exchange found potential issues in fundamentals (low liquidity, weak development activity, or compliance gaps). Historically, tokens entering watchlists often experience elevated sell pressure, wider bid-ask spreads and lower volumes as retail and algorithmic flows reduce exposure; some are ultimately delisted if remediation fails. Short-term impact: likely increased volatility and downward pressure on BLY price on Bithumb and potentially across other venues via correlated selling. Traders should expect reduced inbound liquidity and higher execution risk. Medium-to-long-term impact: depends on whether Blocery addresses the cited concerns and communicates effectively. Successful remediation can stabilize price and restore confidence, but failure or weak responses often lead to permanent listing removal and long-term devaluation. For market stability, the event is contained (single-token) but contributes to cautious sentiment toward smaller utility tokens, reinforcing a flight to higher-quality, liquid assets while exchanges tighten listing standards.