Competition

Operating a cryptocurrency exchange is a business, and listing decisions are influenced by competition. If a new exchange offers more favorable terms for a particular token, it may be reasonable to consider delisting it.

Let's imagine a scenario where a competing platform emerges, charging lower trading fees for a specific cryptocurrency. Naturally, this makes the coin more attractive to traders, resulting in a shift in trading volume.

In such cases, the exchange with higher fees is losing transaction revenue for that coin to its competitor. At a certain point, it may be more sensible for them to remove the coin rather than attempting to match the pricing.

Cryptocurrency exchanges must also evaluate how new listings could impact their existing market share. For instance, if a coin directly competes with a cryptocurrency already listed on the exchange, they may be reluctant to undermine their own position.

For example, let's consider Exchange A, which lists its own native Coin B. In this situation, it may be hesitant to add Coin C, which aims to achieve the same purpose. Doing so could potentially dilute the demand for Coin B and result in reduced overall trading activity.