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Binance.US Plans Amp (AMP) Delisting in Response to SEC Securities Tag

By:
Bob Mason
Updated: Aug 1, 2022, 21:37 GMT+00:00

On Monday, AMP took a hit in response to the Binance.US announcement. In January 2021, Binance.US took a similar course of action with XRP.

AMPUSD under pressure after Binance delisting FXEmpire

Key Insights:

  • It is a bearish start to August for Amp (AMP), which is currently down 6.59% to $0.0085.
  • On Monday, Binance.US announced the delisting of AMP in response to the SEC classification of nine digital assets as securities.
  • The technical indicators are bearish, with AMP sitting below the 50-day EMA.

On Monday, AMP is currently down 6.59%. Reversing a 1.11% gain from Sunday, AMP stands at $0.0085. The loss follows an 11.65% decline from July.

A bullish start to the day saw AMP rise to a morning high of $0.0092 before hitting reverse. Coming up short of the First Major Resistance Level at $0.00937, AMP slid to a low of $0.0081.

AMP fell through the First Major Support Level at $0.00887 and the Second Major Support Level at $0.00863.

Finding support at the Third Major Support Level at $0.00813, AMP returned to $0.0085.

The July trend-bucking decline and the Monday loss come in response to the SEC labeling AMP and eight other cryptos as securities and exchange responses to the SEC tag.

Binance.US Announces AMP Delisting in Response to SEC Tagging

On Monday, Binance.US announced the planned delisting of AMP.

The announcement outlined the most recent SEC class action against a former Coinbase employee, saying,

“Last week, the Securities and Exchange Commission (SEC) filed securities fraud charges against a former employee of Coinbase, among others. In its suit, the SEC named nine digital assets that it alleges are securities. Of these nine tokens, only Amp (AMP) is listed on the Binance.US platform.”

The announcement went on to say,

“Out of an abundance of caution, we have decided to delist the AMP token from Binance.US effective August 15, 2022. While trading of AMP may resume at some point in the future on the Binance.US platform, we are taking this step now until more clarity exists around the classification of AMP.”

In late July, news hit the wires of the SEC investigating Coinbase over unregistered securities listings. Coinbase responded to the investigation by saying that the company “does not list securities. Period.”

The SEC investigations, tagging of cryptos, and the Binance.US delisting could set a precedent and give the SEC greater power over the crypto market.

Binance.US and other US crypto exchanges may need to delist any crypto that the SEC deems a security, despite no actual formal crypto regulatory framework or jurisdiction over digital assets.

Binance.US took a similar step in January 2021 by delisting XRP in response to the SEC v Ripple case, which has been ongoing since December 2020.

AMP Technical Indicators

A move through S2, S1, and the $0.0091 pivot would target the First Major Resistance Level (R1) at $0.0092 and the Sunday high of $0.0094.

AMP would need a marked shift in sentiment towards the latest SEC tagging and Binance.US delisting to support a return to $0.0090.

In the case of an extended crypto rally throughout the session, XRP could test resistance at $0.0095 and the Second Major Resistance Level at $0.0097.

The Third Major Resistance Level sits at $0.0108.

Failure to move through S2, S1, and the pivot would leave the Third Major Support Level (S3) at $0.00813 in play.

News of more exchanges delisting could bring sub-$0.0080 levels into play.

AMP under selling pressure.
AMPUSD 020822 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal.

At the time of writing, AMP sat below the 50-day EMA, currently at $0.0089.

The 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, both price negatives.

A further pullback of the 50-day EMA from the 100-day EMA would signal a fall to sub-$0.0080.

However, a move through the 50-day would support a return to $0.0090.

EMAs are bearish
AMPUSD 020822 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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