Binance's Delistings Trigger Panic and Paradox in Crypto Markets

Binance, the world's largest cryptocurrency exchange by trading volume, announced the delisting of Flamingo (FLM), Kadena (KDA), and Perpetual Protocol (PERP) in November 2025, triggering sharp price swings and raising questions about market liquidity. The move, part of the exchange's routine asset review process, will halt spot trading for the three tokens on November 12, 2025, with deposit and withdrawal restrictions following in subsequent months. Binance cited its commitment to maintaining high standards for listed projects, emphasizing factors like liquidity, security, and regulatory compliance as key criteria for delisting decisions, according to CryptoTimes.

The delisting announcement sent KDA and PERP into steep declines, while FLM defied expectations with a dramatic price surge. KDA, already reeling from the Kadena project's public announcement of ceasing operations in October, plummeted nearly 40% in the 24 hours following the delisting news, trading at $0.04403 as of late October, Invezz reported. PERP also dropped 15%, reflecting broader caution among traders. In contrast, FLM surged nearly 48%, bucking the typical trend of panic selling during delistings. Analysts noted this anomaly mirrors past cases, such as Alpaca Finance's 71% rally after its Binance delisting earlier in 2025, raising concerns about potential market manipulation, CryptoPotato noted.

Binance users holding the delisted tokens face urgent action requirements. Deposits of FLM, KDA, and PERP will no longer be credited after November 13, 2025, and withdrawals will close permanently on January 12, 2026. The exchange warned that unclaimed tokens may be converted into stablecoins, though this process is not guaranteed. Traders with open positions in these assets were advised to adjust or close them by early November to avoid forced liquidations or automated sales, Invezz reported.

The delisting underscores Binance's growing influence over market sentiment. While the exchange stressed that its decisions prioritize user protection and market integrity, the abrupt price movements highlight the volatility inherent in crypto markets. For KDA, the delisting compounds existing challenges, as the Kadena team's exit left the project without active development or liquidity support. FLM's unexpected rally, meanwhile, has sparked debates about speculative trading dynamics and the role of liquidity in price discovery, as noted by CryptoPotato.

The broader market reaction also revealed diverging investor behaviors. While KDA and PERP's declines align with typical delisting patterns, FLM's surge suggests a segment of traders may view delistings as speculative opportunities. This duality reflects the unpredictable nature of crypto markets, where news events can trigger both panic and opportunistic buying, Yahoo Finance reported.

As Binance continues its asset review process, the delisting of FLM, KDA, and PERP serves as a cautionary tale for investors. The exchange's ability to sway token prices through listing and delisting decisions remains a critical factor in the crypto ecosystem, with implications for market stability and investor strategy.