Crypto drama has not been sparse in recent months. If anything, the downturn in crypto prices has made the market all the more competitive. With a lack of new users rushing into the space and plenty of uncertainty around where to put one’s money, the competition for new customers is tighter than ever before. And with regulatory woes atop this increased competition, these companies also have to diligently comply with governing bodies around the world. Recently, Helium (HNT-USD) is joining those feeling the pain as it butts heads with Binance (BNB-USD) over its Helium crypto listing.
Make no mistake, Helium is not having as terrible a year as other crypto projects. On the contrary, Helium and its parent company Nova Labs are doing better than ever. The project saw a $200 million fundraise in early 2022, even as the market was in a downturn. Not to mention, the money raise came in part by direct competitors to the project’s business model. Firms like Nokia (NYSE:NOK)-backed NGP Capital and Telekom Innovation Pool are betting on Helium’s success over even the largest of legacy Internet Service Providers (ISPs).
Indeed, Helium is making a splash as one of the largest 5G internet networks in the world. And, it’s doing so completely free of towers and expensive construction. Nearly 6,000 5G hotspots across the country provide a decentralized web to connect to. And through a partnership with T-Mobile (NASDAQ:TMUS), the company will be filling in the gaps with its own network.
And yet, through all of this, Helium isn’t immune to the effects of the crypto crash. HNT, the Helium crypto, has been struggling to turn around a bearish downturn. Binance is not helping, either.
Helium Crypto Holding on Through Binance Delistings
The Helium crypto is facing a bit of volatility in recent days as tensions rise between the project and Binance. Future outlooks for HNT are a bit uncertain, now. It is losing much of its contact with Binance users as the exchange company pares down on the amount of HNT trade pairings it offers.
Earlier in the month, Binance announced its intentions to partially delist the Helium crypto. According to a report by Forbes, the decision comes due to “misleading marketing” on the part of Nova Labs. It also cites the company’s decision to migrate Helium from its own blockchain to Solana’s (SOL-USD) as another reason.
It is not a full delisting, mind you, that Binance is proceeding with. Rather, it is only removing certain trading pairs. Users will no longer be able to buy HNT with BinanceUSD (BUSD-USD), Tether (USDT-USD) or Bitcoin (BTC-USD). However, this is still a major blow.
Tether is the largest stablecoin in the world, and now, people can’t use it to buy Helium on the most ubiquitous exchange. Moreover, Binance recently removed support for a number of other major stablecoins. Instead, users who deposit these coins will receive BUSD to trade with. So, by removing BUSD trades, Binance is barring users from trading a slew of other stablecoins for Helium as well.
Helium’s top trading pairs in terms of volumes are with BUSD and USDT. BTC trades are also notable for the project. And as of Oct. 14, these trading pairs won’t exist. This is causing an outburst from the Helium Foundation, whose COO calls the partial delisting a decision with “no basis.” A Binance spokesperson reiterates the company periodically assesses its listing and makes adjustments to “protect our users.”
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.