Binance, a prominent cryptocurrency exchange, has made a strategic move by relocating the native tokens of bankrupt crypto firms Voyager (VGX) and FTX (FTT) to its newly established innovation zone. This decision was part of a broader action that involved transferring 16 other struggling digital assets, including JasmyCoin (JASMY), OMG Network (OMG), WazirX (WRX), Serum (SRM), OAX (OAX), and more.
Binance CEO Changpeng “CZ” Zhao explained that rather than directly delisting these tokens, the exchange opted to move them to the innovation zone based on a suggestion from a community member. CZ emphasized that this relocation serves as a prelude, allowing the failing projects to improve. However, CZ made it clear that if these projects fail to demonstrate progress, delisting remains a possibility.
The innovation zone on Binance was specifically designed to provide users with a platform to trade innovative projects characterized by higher volatility and risks compared to other tokens. Binance will periodically review and assess projects that meet these criteria, monitoring their development closely. If deemed appropriate, these projects could be migrated to Binance’s main platform.
Both Voyager (VGX) and FTX (FTT) have experienced a significant decline in interest since filing for bankruptcy in 2022. VGX, for instance, has dropped from over $1 to approximately $0.15911 at the time of writing, representing an 83% decline over the past year. Its market capitalization has also plummeted to around $40 million from a peak of over $300 million, with a daily trading volume below $10 million.
Similarly, FTX’s FTT has witnessed a rapid decline from its previous heights. The token, associated with the bankrupt exchange, has fallen by over 96% to $1.18594 after reaching an all-time high of over $84 in 2021. Currently, its market capitalization stands at $390.05 million, with a trading volume of $11 million.
As the situation unfolds, Binance’s move to the innovation zone provides a new opportunity for these struggling tokens to potentially turn their fortunes around.
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