Binance has just announced the delisting of three altcoins from its spot platform, sparking contrasting market reactions. Flamingo (FLM) defied logic by surging nearly 20%, while Kadena (KDA) and Perpetual Protocol (PERP) plummeted. This unexpected volatility raises a crucial question: is this a risky speculative move or a legitimate market signal?
The exchange giant, Binance has set November 12, 2025 at 03:00 UTC as the deadline for spot trading of FLM, KDA, and PERP. After this date, all pending orders will be automatically cancelled. Deposits made after November 13 will not be credited to user accounts, and the withdrawal deadline is set for January 12, 2026.
The delisting process goes well beyond simple spot trading. Margin trading will cease on November 4, with loan suspensions already effective since October 30. Mining pool services will also stop on November 4, followed by conversion features on November 6. Only futures contracts will remain available, although Binance hasn’t ruled out implementing additional risk management measures for these derivative products.
This decision stems from the periodic review process that Binance applies to all its listed assets. The platform evaluates development teams’ commitment, on-chain activity, trading volumes, available liquidity, blockchain network security, project transparency, and regulatory compliance. When a token no longer meets the required standards, Binance proceeds with delisting to protect its users.
The market response perfectly illustrates the unpredictability of delisting events. Kadena (KDA) fell 3.43%, worsening an already established downward trend. This decline occurs in a particularly difficult context for the project, which is facing significant internal restructuring following the departure of several key organization members.
Perpetual Protocol (PERP), which operates on Ethereum’s Optimism Layer 2 and supports a decentralized perpetual exchange, retreated by 1.37%. This moderate correction likely reflects the fact that the project has a decentralized infrastructure that limits its dependence on centralized exchanges.
The most intriguing case remains Flamingo (FLM), which surged 19.7% immediately after the announcement. This counter-intuitive reaction recalls the case of Alpaca Finance (ALPACA), which jumped 71% during its delisting earlier this year. At the time, this spectacular rise raised suspicions of market manipulation among analysts. One trader commented on social media: “Binance will remove FLM on November 12, 2025, yet the token has climbed… Big pumps often mean big risk.”
FLM’s surge raises a fundamental question about market psychology during delistings. Historically, these announcements trigger massive selling waves as liquidity evaporates and holders seek exits. Yet some tokens defy this logic, attracting speculative traders who bet on a liquidity squeeze or a temporary revaluation before the final removal.
This dynamic creates an extremely volatile trading environment. Short squeezes can amplify upward movements when short positions are forced to cover in a market where liquidity is rapidly decreasing. At the same time, the risk of holding these assets increases proportionally to the withdrawal deadline, creating a perilous timing game for traders.
Often, these sudden rises occur when whales push prices higher to sell their holdings at a better price using retail FOMO as counterparty.
For long-term investors, these movements represent more of a warning sign than an opportunity. A Binance delisting significantly reduces an asset’s accessibility and may reflect deep structural problems with the project itself. Binance’s evaluation criteria cover technical and fundamental aspects which, when no longer met, generally indicate a deterioration in the project’s viability.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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