Mithril requests Binance to refund 200,000 BNB worth $53 million following delisting

Mithril (MITH), a crypto project in the Ethereum ecosystem, is demanding a refund from the largest exchange by daily traded volume, Binance, following a periodical delisting exercise. The platform's token, MITH, lost over 30% of its value as investors reacted to the news. Mithril price now trades at $0.0085 after a minor bounce from support it respected at $0.0078.

Binance delists four tokens, including MITH

Binance exchange, in a blog post published on Thursday, announced that it would no longer support buying and selling of several projects, including MITH, TRIBE, REP and BTCST. The communication stated that the decision to oust these tokens from the exchange comes after a review to ensure that all assets meet the expected standards.

Binance explained, "when a coin or token no longer meets this standard or the industry changes, we conduct a more in-depth review and potentially delist it." This review is carried out periodically using indicators like the team's commitment to the project, trading volume and liquidity, and the stability and safety of the network, among other key signals.

1/ Today, Binance has announced that it will delist MITH. As part of the MITH listing, Binance required a 200,000 BNB deposit, which was never returned.
⁰On behalf of the Mithril community, we ask @cz_binance to return this deposit so that Mithril may continue to operate.

— MITH (@mithdotio) December 15, 2022

The trading pairs unavailable for trading include MITH/USDT, REP/USDT, TRIBE/USDT and BTCST/BUSD. Moreover, deposits processed after December 23, 2022, at 01:00 (UTC) will not be credited to the users' accounts.

Mithril demands 200,000 BNB from Binance to stay operational

Following the news that Binance was delisting MITH, the Mithril team requested the exchange to return 200,000 BNB deposited in 2018. According to Mithril, this deposit worth around $53 million is necessary for the project's stability and operation.

Mithril explained via a Twitter thread that the project has collaborated with Binance on various programs since 2018, such as the Binance Charity. MITH was also the first token to launch on the BNB Beacon Chain (BEP2 network). With the delisting move, this connection has been severed, and Mithril requests a refund.

It is not publicly known how Binance used the 200,000 BNB from Mithril. However, a blog post by the exchange published four years ago shows that the crypto project donated 20,000 BNB to the Blockchain Charity Foundation in appreciation for the listing. Moreover, Binance is not known for charging project listing fees.

You guys donated it lol.https://t.co/IIFrA8fSXq

— Ikigai (@rexcel_nosleepr) December 15, 2022

Mithril price bleeds from rising selling pressure

Mithril price is wading in murky red waters following the news of the token's delisting on Binance. Investors are likely rushing to close their positions ahead of the deadline, thus increasing overhead pressure.

The four-hour time frame chart shows a sharp drop from MITH's previous support at $0.0120 to lows around $0.0078. Following a minor bounce, Mithril price dodders at $0.0085 at the time of writing.

MITH/USDT four-hour chart

The pessimistic outlook in MITH is emphasized by the Moving Average Convergence Divergence (MACD) indicator (in blue) as it extends movement below the mean line as well as the signal line (in red).

There is a chance, Mithril price could keep its rebound from the support intact now that the Stochastic oscillator reveals slightly oversold market conditions. Traders might consider triggering buy orders as the Stochastic returns into the neutral area above 20.00.

MITH might gain momentum to the upside if this technical index lifts above the midline (50.00) and moves into the overbought region, which starts at 80.00 to 100.00. A 61.8% recovery from support at $0.0078 would indicate a take-profit target at $0.0113.