TE-FOOD Price Drops as Kucoin Places Them in Special Treatment
Popular blockchain food-traceability solution, TE-FOOD has seen its tokens crash by over 25% following its placement in the “Special Treatment” category of KuCoin Exchange. KuCoin has already delisted several projects following the Special Treatment Rule.
TE-FOOD got listed on KuCoin barely over a year ago and KuCoin was its largest listing, accounting for more than 85% of total trades. The move to delist TE-FOOD will certainly hit the project hard. TE-FOOD is currently listed on less popular exchanges - IDEX and DDEX.
KuCoin introduced “Special Treatment” as a way to provide a solid user experience. Projects that are at risk of being delisted are temporarily placed on the Special Treatment list before they are eventually delisted or deemed risk-free after a mandatory review.
A cryptocurrency will become a Special Treatment project if it has maintained low liquidity over a certain period or has shown signs of closing shop within three months. Other parameters that may land a cryptocurrency on the “Special Treatment” list include, failing to corporate with KuCoin for a routine inspection, incomplete or misleading information, security issues, bankruptcy, or wash trading, amongst others.
Upon placement on the “Special Treatment” category, a project will be given a ticker meant to warn investors of the risk of the project being delisted. A project may either be delisted or the ticker removed at the end of the observation period (if it exceeds the necessary thresholds).
Upon being delisted by the Exchange, any trades or deposits of the Project will be suspended. A new approval and listing procedure shall be carried out in case the delisted Project wants to return to the Exchange.