Leading crypto exchange Binance has suspended deposits for TROY, the native token for the crypto brokerage platform Troy Trade. Shortly after the announcement, the digital asset slumped to below 40% and remains around that level as of this writing.
#Binance has suspended deposits for TROY on BSC to protect users.
More information ➡️ https://t.co/kaxKpvA4Lo pic.twitter.com/HJKRZXhocx
— Binance (@binance) January 3, 2025
TROY is the lifeblood of the Troy Trade platform, which touts itself as “a global prime broker specialized in crypto trading and asset management.” The platform provides features like spot, margin, and derivatives trading. The TROY token plays a central role in the ecosystem by being used for transaction fees, staking, and platform rewards.
Why Did Binance Suspend TROY?
TROY’s troubles began on January 2nd when Binance placed a Monitoring Tag on the digital asset alongside other tokens. This tag flags tokens that show higher risk and volatility than other listed assets. Tokens under this tag are reviewed regularly and risk being delisted if they fail to meet the crypto exchange’s listing standards. For investors, the tag serves as a warning to approach these tokens with caution.
On January 3rd, the crypto exchange announced the suspension of TROY token deposits on the Binance Smart Chain (BSC). The decision was made due to security concerns identified within the token’s BEP20 contract. Binance explained that this was a precaution to protect users from potential risks. While deposits through the Ethereum network remain unaffected, the news led to panic among investors, triggering a sharp price decline.
According to the price-tracking website CoinStats, TROY was trading at $0.0044 at the time of writing, a 43.7% decrease.
Other Tokens Face Scrutiny
Like most crypto exchanges, Binance routinely reviews tokens on its platform to maintain security and compliance. Previous reports confirm that the crypto exchange has delisted several cryptocurrencies that didn’t meet its standards.
Coinbase has also delisted various tokens that no longer meet its requirements. One such example is the wrapped Bitcoin (wBTC), a digital asset that has sparked a significant debate in the crypto community.
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