Binance, the world's largest crypto exchange, announced this Friday (29) that it will be removing another 12 cryptocurrencies from Binance Alpha. The announcement created strong selling pressure on these projects, with some losing up to 94.5% of their value.

The exchange had already removed 20 other cryptocurrencies two weeks ago, also causing sharp declines.

Since these are smaller projects, the losses are limited to a small group of investors who prefer higher-risk investments.

Earn R$50 in Bitcoin directly in your account. Open your account at Mynt and receive the cashback. Use coupon: LIVE50 Mynt.com.br

Cryptocurrencies face sharp drop after being removed from Binance Alpha

In short, Binance Alpha serves as a showcase for new cryptocurrencies with growth potential, which may be listed on the main exchange if they perform well.

On the other hand, these projects can also be removed from the platform, as happened with a dozen of them this Friday (29), causing sharp declines.

"Tokens on Binance Alpha may present higher-than-normal risk and are likely to be subject to high price volatility."

"Users should adopt proper risk management and do their own research (DYOR) to fully understand the projects before choosing to trade these tokens," Binance explains.

The cryptocurrencies affected by the decision are:

• DIGI (MineD) — -94.5%

• BOOM (Boom) — -87.3%

• JOJO (JOJOWORLD) — -83.5%

• K (Sidekick) — -82.5%

• 恶俗企鹅 (三维威廉泰尔企鹅) — -64.6%

• BNBXBT (BNBXBT) — -60.6%

• TYCOON (Dino Tycoon) — -53.1%

• PAL (Palio) — -25.2%

• HIPPO (sudeng) — -13.8%

• LN (Lnfi Network) — -12%

• PLAYSOLANA (Play Solana) — -6.3%

• SKI (SKI MASK DOG) — -2.5%

In a statement published on social media, Binance Wallet points out that investors can still withdraw these cryptocurrencies or sell them after the removal.

Recently, the exchange had removed another 20 cryptocurrencies from Binance Alpha, and 10 of them dropped more than 50% right after the announcement.

This week, Binance placed 9 cryptocurrencies on its watchlist, threatening removal.

These actions may indicate that the market is less interested in small projects. As an example, Bitcoin dominance remains above 59%.