Bybit's Strategic Delistings: What Traders Must Know About Liquidity Risk and Project Viability

In the rapidly evolving cryptocurrency market, exchange delistings have become a critical indicator of project health and liquidity risk. Bybit, one of the largest crypto exchanges, has intensified its scrutiny of listed assets in 2025, delisting tokens such as PELL, PURSE, and TRC by December 23, 2025, alongside 18 spot trading pairs in November. These moves reflect a broader industry trend toward prioritizing compliance, liquidity, and project sustainability. For traders, understanding the implications of these delistings-and the criteria driving them-is essential for mitigating risk and preserving portfolio value.

The Delisting Landscape: Bybit's 2025 Actions

Bybit's delistings in 2025 span a range of tokens, including low-volume assets like LFT, DOME, and AFG as well as projects with questionable development trajectories, such as BOB Token and DSRUN according to the announcement. The exchange has cited reasons including "insufficient project development," "regulatory compliance concerns," and "low trading volume" as key drivers of these decisions according to Bybit's official report. For instance, the April 2025 delisting of BOB Token and DSRUN was attributed to declining user interest and reduced liquidity, which traders interpreted as a signal to offload holdings before the deadline according to market analysis.

The December 2025 delistings of PELL, PURSE, and TRC further underscore Bybit's focus on project viability. These tokens, which had previously shown promise, now face scrutiny over stalled development updates and declining market participation. Bybit's official announcements emphasize its commitment to maintaining a "robust and secure trading environment" according to the announcement, a stance that aligns with broader industry efforts to weed out speculative or fraudulent projects.

Bybit's Delisting Criteria: A Dual Approach

Bybit's delisting framework combines manual and automatic mechanisms to evaluate assets. Manual delistings occur when projects fail to meet standards in security, compliance, or development activity. For example, tokens with "insufficient project development" or "misleading disclosures" are flagged for removal according to Bybit's help center. Automatic delistings, meanwhile, are triggered by technical metrics, such as a derivative contract's last traded price falling below 20 times its tick size as detailed in the official documentation. This dual approach ensures that both qualitative and quantitative factors are considered, reducing the risk of listing underperforming or non-compliant assets.

The exchange's 2025 delistings of FRAG, BOMB, ULTI, and TRVL highlight the practical application of these criteria. These tokens were removed due to low trading volume, lack of development, and compliance concerns, illustrating how Bybit's framework prioritizes long-term sustainability over short-term speculation.

Market Impact: Liquidity Risk and Price Volatility

Delistings on major exchanges like Bybit often trigger immediate liquidity shocks. When trading pairs are removed, tokens lose access to a significant portion of their user base, leading to price declines and reduced market depth. For example, the April 2025 delisting of BOB Token and DSRUN coincided with a 30% price drop, as traders rushed to sell before the deadline according to market analysis. Similarly, the November 2025 delisting of 18 spot pairs led to a 15–20% average decline in the affected tokens' trading volumes according to market reports.

The broader market impact is amplified by the interconnected nature of crypto ecosystems. As Bybit's delistings signal waning confidence in certain projects, they can trigger cascading effects across other exchanges. A 2025 Chainalysis report notes that stolen funds from services and personal wallets have exceeded $2 billion in the first half of the year alone, underscoring the fragility of liquidity in a sector prone to cyber threats and regulatory shifts.

Project Viability: Beyond the Exchange's Lens

While Bybit's criteria provide a useful benchmark, traders must also assess project viability through independent due diligence. Key factors include:
1. Development Activity: Regular updates, active GitHub repositories, and transparent roadmaps are critical indicators of a project's health according to market analysis.
2. Regulatory Compliance: Projects that align with evolving global standards (e.g., MiCA in the EU) are more likely to retain institutional interest according to industry analysis.
3. Community Engagement: Sustained user participation on forums, social media, and governance platforms can signal long-term resilience according to market research.

The Bybit hack of 2025-where $1.5 billion was stolen by DPRK actors-further highlights the importance of evaluating a project's security infrastructure according to security reports. Traders are increasingly prioritizing assets with audited smart contracts, multi-signature wallets, and decentralized governance models to mitigate operational risks.

Recommendations for Traders: Mitigating Liquidity Risk

1. Diversify Listings: Avoid over-reliance on a single exchange. Tokens listed on multiple platforms (e.g., Binance, Kraken) are less vulnerable to liquidity shocks from individual delistings according to market analysis.
2. Monitor Delisting Timelines: Stay informed about Bybit's and other exchanges' delisting schedules. Tokens with imminent removal dates should be evaluated for immediate action according to the official announcement.
3. Leverage On-Chain Analytics: Tools like TokenMetrics and Chainalysis can provide real-time insights into trading volume, wallet activity, and network health according to market research.
4. Prioritize Security: Given the rise in cyber threats, allocate capital to projects with robust security protocols and transparent audits according to security reports.

Conclusion

Bybit's 2025 delistings serve as a wake-up call for traders to adopt a more rigorous approach to portfolio management. While the exchange's criteria offer a valuable framework for assessing project viability, the broader market dynamics-ranging from liquidity risks to cybersecurity threats-demand proactive due diligence. As the crypto landscape matures, the ability to navigate delistings and identify resilient assets will become a defining factor in long-term success.