Vite Labs, a technology company that develops decentralized blockchain solutions, has announced the challenges that it has been facing due to the recent delisting of its token by Binance and issues with DWF’s market-making services.
The company addressed the issue through a social media post on X, where the team revealed that the company’s remaining development funds have been affected severely due to which they have decided on cancelling their future roadmap plans.
As per the post, the company will maintain the network operations up and running until it becomes unsustainable to do so.
This decision might have come as a shock to the Vite community members as they had invested in the platform based on the promise of providing zero-fee blockchain ecosystem.
The fully diluted valuation of the VITE token has stooped down to approximately $310,000, as per Wu Blockchain. This downfall indicates how bad the market conditions are and the loss of investor confidence since the delisting announcement.
Vite Labs Expresses Disappointment
Vite Labs did not refrain from expressing its disappointment over Binance’s decision and emphasized that it was the only Layer-1 blockchain with zero fees listed on the exchange. As a result of this delisting, Vite Labs’ services for moving money in and out of the platform will stop working in April but the users can still use gateways run by the community to make transactions.
Next Steps
For the next chapter, the team’s focus will now shift towards maintaining essential network functions while they have a look at their financial viability. The cancellation of this roadmap is also raising concerns about long-term sustainability of the project and its ability to get back up from this setback.
Why was the token delisted from Binance?
Binance has a policy where they assess various factors when deciding to delist any token. The main reasons due to which the exchange decided to delist the token include low trading volume and insufficient development activity. These factors did not meet Binance’s listing standards and hence the token had to be delisted from the platform.
What went wrong with DWF Labs?
DWF Labs, a global digital asset market maker, used up a lot of Vite Labs’ money in trading strategies that was meant for developing and growing the platform. This move by the DWF labs made matter even worse financially for Vite Labs and the company had to eventually decide on canceling the roadmap plan.
As of now, Vite Labs is warning its community members to be prepared for any possible changes as the company navigates through these difficult times. This situation on the other hand, shows how unpredictable the market can be and exhibits the risks of relying too heavily on big exchanges for support and liquidity.
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