Bithumb and Coinone sound alarm over inactive token community

In a significant move highlighting the evolution of regulatory oversight, leading South Korean cryptocurrency exchanges Bithumb and Coinone have added the digital asset NEIRO to their official delisting watchlist, effective March 2025. This decisive action highlights an important shift towards stricter token governance, where project vitality and community engagement are now paramount to the exchange’s survival. As a result, this development sends a clear signal to the broader crypto market about the non-negotiable standards required in the modern digital asset landscape.

NEIRO decides to delist based on community indicators

Bithumb and Coinone, two pillars of South Korea’s vibrant crypto economy, released statements regarding NEIRO at about the same time. Specifically, Bithumb provided detailed rationale, noting that while NEIRO was originally issued based on online content, the exchange found that the relevant online community activity was insufficient. This rating is not arbitrary. Instead, exchanges are now employing sophisticated metrics to assess project health. These metrics often include:

• Social media engagement: Analyze daily posts, user interactions, and developer communications on platforms like Discord and Telegram.
• Development activities: Track code commits, GitHub repository updates, and roadmap progress.
• Consistency in trading volume: Monitor for abnormal declines in liquidity or long-term stagnation in trading.

Placement on the watchlist therefore serves as a formal warning, demonstrating renewed vigor to the NEIRO project team and giving an interim period to address the concerns raised. Historically, tokens that cannot fix such issues end up being permanently removed from trading platforms, which typically causes significant price fluctuations and reduced investor access.

Expansion of Korea Exchange’s compliance framework

This action against NEIRO is not an isolated incident but is part of a broader and more stringent regulatory environment. With the implementation of travel rules and strict anti-money laundering (AML) policies, Korean exchanges are gradually tightening their listing and maintenance standards. For example, the Financial Services Commission (FSC) requires exchanges to conduct regular due diligence on all listed assets. Additionally, the Korean Financial Intelligence Unit (KoFIU) requires transparent reporting of unusual trading activity.

As a result, exchanges like Bithumb and Coinone now operate large internal review boards. These committees regularly audit tokens based on a multi-point checklist that goes beyond price and market cap. Key evaluation criteria now include:

This framework effectively shifts the burden of proof to the project team, requiring them to maintain verifiable legitimacy at all times.

Expert analysis of the impact of watchlist announcements

Market analysts emphasize that watchlist announcements serve an important function in maintaining market health. “Exchanges are gatekeepers,” points out Dr. Soo-min Park, a fintech researcher at Seoul National University. “Their primary duty is to protect consumers from abandoned and fraudulent projects. The delisting watchlist is a transparent mechanism that provides a corrective action period. It cushions sudden market shocks and is consistent with global best practices for investor protection.”

Furthermore, historical delisting data on Korean exchanges shows a predictable pattern. Initially, the volatility of the announcement will lead to selling pressure. Recovery is then possible if the project addresses the issue. However, as delisting progresses, liquidity evaporates and assets are often stranded in users’ wallets. This process ultimately strengthens the entire ecosystem by removing weak projects and focusing funding and attention on tokens with proven utility and active management.

Comparison of historical background and global actions

The NEIRO situation shows similarities with global exchange rate policy. Major platforms such as Binance and Coinbase regularly conduct similar reviews due to “not meeting listing standards” or “lack of project development.” For example, in late 2024, multiple exchanges delisted several privacy-focused tokens due to evolving regulatory pressures. The main difference in South Korea is a formalized public watchlist system that provides structured warning before final action.

This transparency is a direct result of past market events. After Luna Terra’s bankruptcy in 2022, South Korean regulators and exchanges faced intense public and government scrutiny. In response, they jointly developed more proactive monitoring tools. The watchlist system therefore represents a mature approach to risk management that aims to identify problems long before they threaten market stability or consumer assets.

conclusion

The placement of NEIRO on the delisting watchlist by Bithumb and Coinone marks an important turning point for token governance in 2025. This measure reinforces that the survival of cryptocurrencies depends not only on initial issuance, but also on sustained and demonstrable project activity and community engagement. For investors, it focuses on fundamental project health and emphasizes the importance of due diligence beyond the price chart. For the broader market, this move by South Korea’s leading exchange sets a clear precedent, fostering a healthier, more transparent, and more accountable digital asset ecosystem where only projects with real utility and active development can flourish.

FAQ

Q1: What does it mean for an exchange to put a token on a delisting watchlist?
This is a formal warning that a token is at risk of being removed from an exchange for not meeting certain maintenance criteria, such as low community activity or lack of development. The project team is given a grace period to fix the problem.

Q2: How long does a token typically remain on the watchlist before a final decision is made?
The period varies by exchange, but often ranges from 30 to 60 days. Exchange provides clear deadlines and requirements to demonstrate project improvement during this review period.

Q3: What happens if my NEIRO token is delisted?
If delisted, the trading pair will be deleted. You will probably need to withdraw your NEIRO tokens to a private wallet that supports that asset before the withdrawal deadline. Trading and deposits on the exchange will be suspended.

Q4: Are Bithumb and Coinone watchlist criteria standardized?
Although both operate under Korea’s unified regulatory framework, each exchange has its own detailed internal policies. However, core principles such as project viability, compliance, and community health are consistent across major platforms.

Q5: Will being on the watchlist automatically result in delisting?
No, it’s not. Placement begins the review process. If the project team is able to successfully address the exchange’s concerns with verifiable evidence, the token will be removed from the watchlist and trading can continue as normal.