Coinbase Announces DESO Token Delisting, Price Tumbles 20%

Leading cryptocurrency exchange Coinbase has revealed plans to delist Decentralized Social’s native token DESO, triggering significant market turbulence. The announcement caused DESO’s price to plummet 20% within 24 hours as investors rushed to react to the news.

The project, which previously secured over $200 million from prominent investors including a16z, Pantera Capital, Coinbase Ventures, and Sequoia, now faces an uncertain future.

Trading Suspension Details

Coinbase will halt all DESO token trading operations after November 8. The exchange has already moved DESO order books to limit-only mode, allowing traders to place and cancel limit orders only.

“Our regular asset monitoring process ensures all listed tokens meet our standards. Following recent reviews, we’ve decided to suspend Decentralized Social trading,” Coinbase stated.

The decision has left DESO investors concerned about the project’s future vision of decentralized social media. DeSo Protocol founder Nader Al-Naji expressed disappointment while addressing the community, drawing parallels to XRP’s previous delisting and subsequent relisting following court proceedings. Al-Naji maintains optimism about eventually returning to Coinbase’s platform.

Market Impact

The delisting announcement, combined with broader crypto market weakness, triggered a 20% collapse in DESO’s price to $4.81. The token traded between $3.62 and $6.29 during the day, marking a monthly decline exceeding 30% and an 86% year-to-date drop.

Trading volume surged 555% as investors moved to exit positions, while the market capitalization stands at $43.8 million. DESO continues experiencing significant price volatility amid declining investor confidence.

This move follows Coinbase’s recent announcement to delist all MiCA non-compliant stablecoins from European platforms by December’s end, aligning with incoming EU regulations designed to enhance crypto asset oversight within the European Economic Area.