Helium Crypto dealt a blow as Binance removes HNT pair

Crypto drama has not been sparse in recent months. If anything, the decline in crypto prices has made the market all the more competitive. With a lack of new users rushing into the space and a lot of uncertainty about where to put their money, the competition for new customers is fiercer than ever before. And with regulatory issues on top of this increased competition, these companies must also pay close attention to governing bodies around the world. Recently, Helium (HNT-USD) joins those who feel the pain when it hits their head Binance (BNB-USD) over its Helium encryption list.

Make no mistake, Helium is not having as terrible a year as other crypto projects. On the contrary, Helium and its parent company Nova Labs make it better than ever. The project saw a fundraising of $200 million in early 2022, even though the market was in a downturn. Not to mention, the fundraising came in part from direct competitors to the project’s business model. Companies like Nokia (SNEEZE:enough)-supported NGP Capital and Telecom Innovation Pool is betting on Helium’s success over even the largest of legacy Internet Service Providers (ISPs).

Helium is actually one of the largest 5G networks in the world. And that makes it completely free of towers and expensive construction. Almost 6,000 5G hotspots across the country provide a decentralized network to connect to. And through a collaboration with T-Mobile (NASDAQ:TMUS), the company will fill the gaps with its own network.

And yet, through all of this, Helium is not immune to the effects of the crypto crash. HNT, the Helium crypt, has struggled to reverse a bearish slump. Binance doesn’t help either.

Helium Crypto Holds Up Through Binance Delistings

The Helium crypto is facing some volatility in recent days as tensions rise between the project and Binance. The future prospects for HNT are a bit uncertain now. It is losing much of its touch with Binance users as the exchange company reduces the amount of HNT trading savings it offers.

Earlier this month, Binance announced its intentions to partially delist the Helium crypto. According to a report from Forbes, the decision comes because of “misleading marketing” on the part of Nova Labs. It also cites the company’s decision to migrate Helium from its own blockchain to Solana’s (SOL USD) as another reason.

It is not a full delisting, mind you, that Binance is proceeding with. Rather, it is simply removing certain trading pairs. Users will no longer be able to buy HNT with Binance USD (BUSD-USD), Tether (USDT-USD) or Bitcoin (BTC-USD). However, this is still a big blow.

Tether is the largest stablecoin in the world and now people can’t use it to buy Helium on the most ubiquitous exchange. Also, Binance recently removed support for a number of other major stablecoins. Instead, users who deposit these coins will receive BUSD to trade with. So, by removing BUSD trades, Binance prevents users from trading a number of other stablecoins for Helium as well.

Helium’s best trading pair in terms of volume is with BUSD and USDT. BTC traders are also known for the project. And as of October 14th, these trading pairs will not exist. This causes an outcry from the Helium Foundation, whose COO calls the partial removal a decision without foundation. A Binance spokesperson reiterates that the company periodically reviews the listing and makes adjustments to “protect our users.”

At the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.