Binance announced Tuesday it will delist three altcoins on November 12, triggering dramatically different market reactions that echo earlier concerns about manipulation during exchange removals.
The world's largest cryptocurrency exchange by trading volume revealed it will remove Flamingo (FLM), Kadena (KDA), and Perpetual Protocol (PERP) from its platform, sending shockwaves through holders of the affected tokens. While Kadena and Perpetual Protocol experienced typical delisting selloffs, Flamingo defied expectations with a surprising rally that raised immediate red flags among market observers.
According to BeInCrypto, Flamingo surged approximately 19.7% following the delisting announcement, with some tracking services reporting gains exceeding 40% in the initial 24-hour period. The counterintuitive price movement stands in stark contrast to typical delisting patterns, where tokens usually experience steep selloffs as liquidity evaporates.
Meanwhile, Kadena dropped 3.43%, deepening an ongoing decline that began after the Kadena organization announced its exit from operations. Perpetual Protocol fell 1.37% after the news broke, reflecting market uncertainty about the token's future trading venues.
"Binance will delist FLM on Nov 12, 2025, yet the token spiked...Big pumps often mean big risk," a market watcher posted, echoing widespread skepticism about Flamingo's unusual price behavior.
The divergent reactions highlight the unpredictable nature of delisting events and raise questions about potential market manipulation, particularly given Flamingo's defiance of typical market mechanics when faced with imminent removal from a major exchange.
Timeline and Trading Restrictions
Binance stated that spot trading for all three tokens will cease on November 12, 2025, at 03:00 UTC. Users will no longer be able to deposit FLM, KDA, or PERP after November 13, 2025, at 03:00 UTC, with deposits made after that deadline not being credited to accounts.
Withdrawals will remain available until January 12, 2026, at 03:00 UTC, providing holders with a two-month window to move their assets to alternative exchanges or personal wallets. The extended withdrawal period represents Binance's standard practice for managing delisting events while minimizing user disruption.
Several Binance services will wind down ahead of the final delisting date. Spot copy trading for these altcoins will end on November 5, while margin trading will conclude on November 4, with borrowings suspended from October 30. Mining pool services supporting these tokens will also stop on November 4.
Futures contracts linked to the three tokens will remain available on the platform, though Binance noted these may be subject to additional risk management measures. This approach allows sophisticated traders to maintain exposure while removing spot market access for retail participants.
Binance's Delisting Rationale
The exchange justified its decision through its periodic review process, which evaluates listed assets against multiple criteria. "At Binance, we periodically review each digital asset we list to ensure that it continues to meet a high level of standard and industry requirements," the company stated. "When a coin or token no longer meets these standards or the industry landscape changes, we conduct a more in-depth review and potentially delist it."
Factors considered in the review include team commitment, development activity, trading volume, liquidity, network security, transparency, and regulatory developments. This comprehensive evaluation framework enables Binance to maintain listing standards while adapting to evolving market conditions.
The delisting comes amid broader industry concerns about token quality and regulatory compliance. Kadena's organizational shutdown contributed to its removal, while questions about development activity and liquidity likely influenced decisions regarding the other tokens.
Echoes of the ALPACA Manipulation Concerns
Flamingo's unexpected rally mirrors a controversial case from earlier in 2025 when Alpaca Finance (ALPACA) surged 71% following its April delisting announcement from Binance. That event triggered widespread allegations of market manipulation, with analysts pointing to suspicious trading patterns and coordinated buying activity.
The ALPACA episode saw the token pump over 1,000% in a matter of days through what experts described as "textbook liquidity hunting" by large market players. The price spike was ultimately unsustainable, with ALPACA crashing 70% within hours after reaching its peak, wiping out gains and leaving latecomers with significant losses.
Market observers attributed ALPACA's volatile movements to several factors, including short squeeze dynamics, with approximately $2.3 million in short positions liquidated following the announcement. On-chain analysis also revealed suspicious accumulation patterns by large wallets in the weeks preceding the delisting news.
The parallels between Flamingo and ALPACA have reignited debates about whether coordinated groups exploit low liquidity conditions during delisting windows to manipulate prices. "These patterns have been observed before, especially during delisting announcements," crypto analyst Ignas noted, pointing to similar pump-and-dump schemes observed on South Korean exchanges.
Impact on Token Holders and Trading Strategies
The delisting creates immediate challenges for holders of the affected tokens. Reduced liquidity on Binance will make it harder to exit positions at favorable prices, particularly as the November 12 deadline approaches. Traders rushing to sell ahead of the cutoff could drive prices lower, especially for KDA and PERP, which already face downward pressure.
According to CoinMarketCap data, Flamingo's market capitalization reached approximately $11.78 million as of October 29, with a circulating supply of 559,126,360 tokens. Despite the recent surge, the token has declined 27.22% over the past 60 days, highlighting ongoing challenges beyond the immediate delisting news.
Token holders face several strategic options. Those seeking to maintain exposure must identify alternative exchanges that support these assets, potentially involving transfers to smaller platforms with reduced liquidity. Alternatively, holders can convert to more established cryptocurrencies or stablecoins before the trading deadline.
Industry research suggests that delistings from major exchanges often drive migration to decentralized exchanges, though this typically comes with increased complexity and potentially higher transaction costs. Historical patterns show delisted tokens face sustained pressure as centralized trading activity diminishes.
Regulatory Scrutiny and Compliance Pressures
The delisting underscores mounting regulatory pressure on smaller cryptocurrency projects. Compliance costs for Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements continue to escalate, with many projects struggling to meet standards expected by regulators in major jurisdictions.
Binance's increasingly stringent review process reflects broader industry consolidation as exchanges face their own regulatory obligations. By removing tokens that fail to maintain adequate development activity, liquidity, or security standards, Binance aims to reduce exposure to regulatory risks while protecting users from potentially problematic assets.
The move follows Binance's role as an industry standard-setter, with its listing decisions carrying outsized influence on token valuations. As the exchange handling approximately $65 billion in daily trades, its actions create ripple effects across the entire cryptocurrency ecosystem.
Final thoughts
For investors, Flamingo's counterintuitive rally serves as a cautionary tale about the dangers of chasing unusual price movements during delisting events. While some traders may profit from short-term volatility, the ALPACA precedent demonstrates how quickly such gains can evaporate.
"Big pumps often mean big risk," as one market observer noted, encapsulating the gambling mentality that can emerge during delisting-related volatility. Traders tempted by Flamingo's surge should remember that artificial price inflation typically proves unsustainable once speculative fervor subsides.
The episode reinforces the importance of diversifying holdings across exchanges and maintaining realistic expectations about token longevity. Projects that fail to maintain Binance listing standards often face existential challenges, regardless of temporary price spikes that may occur during the delisting process.
As the November 12 deadline approaches, market participants will closely monitor whether Flamingo follows ALPACA's trajectory of an eventual crash or manages to sustain its unusual gains - a question that will likely be answered in the coming days as speculation gives way to fundamental realities.