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Nasdaq Warns Crypto Mining Firm Canaan of Possible Delisting
Canaan Faces Nasdaq Delisting Risk as Share Price Slips Below Critical Threshold
Crypto mining hardware manufacturer Canaan Inc. is facing mounting pressure after receiving a formal delisting warning from Nasdaq, highlighting the growing challenges confronting publicly listed crypto-related firms in an evolving market landscape.
The Nasdaq-listed company, whose shares have declined sharply over the past year, must now regain compliance with the exchange’s minimum bid price rule or risk being removed from one of the world’s most prominent stock markets.
Nasdaq Issues Official Warning Over Sub-$1 Share Price
In a statement released on Friday, Canaan confirmed that it received a notification from Nasdaq earlier this week informing the company that it no longer meets listing requirements. The warning stems from the company’s share price remaining below $1 per share for 30 consecutive business days, a direct violation of Nasdaq’s minimum bid price rule.
Under current regulations, Canaan has 180 days, until July 13, to restore compliance. To do so, the company’s shares must close at $1 or higher for at least 10 consecutive trading days. Failure to meet this requirement could trigger further action from Nasdaq, including potential delisting.
Canaan’s stock last closed above the $1 mark on November 28, underscoring how long the company has struggled to maintain investor confidence.
A Tough Year for Canaan Shares
Canaan’s market performance reflects broader shifts within the crypto mining industry. Over the past 12 months, the company’s shares have fallen by approximately 63%, as demand for traditional crypto mining hardware has softened.
On Friday, Canaan stock closed at $0.79, marking a 3.8% decline on the day. The company has not traded above $3 since December 2024, signaling prolonged downward momentum that has alarmed both investors and regulators.
Market data shows that many crypto mining firms are now pivoting away from Bitcoin mining infrastructure and toward artificial intelligence computing services, a strategic shift that has reduced demand for mining rigs and weighed heavily on manufacturers like Canaan.
Possibility of an Extension Still on the Table
Despite the warning, delisting is not yet inevitable. Canaan noted that if it fails to regain compliance by the July deadline, it may still seek additional time from Nasdaq to address the issue.
The company indicated it could apply for an extension that would involve corporate actions such as a reverse stock split, a common strategy used to consolidate shares and artificially raise the trading price. While such moves can restore technical compliance, they do not always resolve underlying business or revenue challenges.
Nasdaq staff will ultimately determine whether Canaan has a viable plan to bring its share price back into compliance. If regulators conclude that the company lacks a realistic path forward, delisting proceedings could move ahead.
What Delisting Would Mean for Investors
A Nasdaq delisting would have serious consequences for Canaan and its shareholders. Stocks removed from major exchanges typically migrate to over-the-counter (OTC) markets, where liquidity is lower and trading is more difficult.
Historically, companies facing delisting often experience sharp sell-offs as investors rush to exit before the stock becomes harder to trade. This dynamic can further accelerate price declines and limit a company’s ability to raise capital in the future.
Signs of Business Momentum Amid Market Pressure
Despite its stock struggles, Canaan has pointed to recent business wins as evidence of ongoing demand for its products. In October, the company announced that a U.S.-based firm had purchased 50,000 units of its latest Avalon A15 Pro mining machines, marking its largest single order in more than three years.
That announcement briefly reignited investor optimism, sending Canaan’s share price up by 25% at the time. However, the rally proved short-lived as broader market concerns resurfaced.
A Broader Trend Across Nasdaq-Listed Crypto Firms
Canaan is not alone in facing regulatory pressure over declining share prices. In December, Kindly MD, a Bitcoin treasury-focused company, received a similar Nasdaq warning after its shares traded below $1 for an extended period.
Kindly MD has until June to regain compliance, but its shares closed Friday at just $0.46, with the stock last trading above $1 in late October.
Earlier this year, Nasdaq also delisted Windtree Therapeutics, a biotech firm that had established a BNB treasury shortly before failing to meet exchange requirements. The company’s shares plunged 77% on the day the delisting was announced, highlighting the severe market reaction such decisions can trigger.
Uncertain Road Ahead for Canaan
As Canaan races against the clock, investors will be watching closely to see whether the company can stabilize its share price and adapt to the shifting priorities of the crypto and AI sectors. While extensions and corporate restructuring remain options, restoring long-term confidence will likely require stronger fundamentals, sustained demand, and a clearer growth strategy.
For now, Canaan’s Nasdaq listing hangs in the balance, serving as another reminder of how volatile and unforgiving public markets can be for companies operating at the intersection of crypto, technology, and global regulation.
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2026-01-23 · 13 days ago0 054Is rndcoin a Real Coin or Just a Crypto Concept?
Clearing the Confusion
One of the most common questions surrounding rndcoin is whether it can actually be bought or traded. In crypto, names can be misleading, and rndcoin is a good example of why careful research matters. Despite the word “coin,” rndcoin is often connected to information services rather than a blockchain asset with its own price.
Comparing Concepts and Coins
This confusion happens because many newcomers associate any crypto-related name with investment opportunities. However, rndcoin is usually discussed in the context of learning and research. For broader context about the origins and basics of rndcoin, you can refer back to What Is rndcoin and Why Are People Talking About It? Recognizing this difference can prevent costly mistakes. Not every crypto term points to a token, and rndcoin reinforces that education platforms play a different role in the ecosystem. To see how rndcoin supports beginner learning, read How rndcoin Is Used for Learning Crypto Basics, which shows how knowledge-first platforms guide users before they trade.
Key Takeaways
By separating concepts from coins, users can approach crypto with clearer expectations and smarter decision-making.
2026-01-09 · a month ago0 054Perps vs Spot: Which Crypto Trading Strategy Is Best?
Key Takeaways:
- Spot trading involves actual ownership of the asset, making it ideal for long-term holding without liquidation risk.
- Perpetual Futures (Perps) allow for high leverage and shorting, but they introduce complex risks like funding rates and margin calls.
- Effective risk management, including the use of Stop-Losses and Isolated Margin, is non-negotiable when trading derivatives.
In the high-speed world of cryptocurrency, how you buy is just as important as what you buy. The Perps vs Spot decision is the first filter every trader must apply to their strategy.
Spot trading is the traditional way of investing. You pay cash, you get the asset. Perpetual Futures, or "Perps," are the financial rocket fuel that powers the massive volume numbers you see on exchanges. They offer superpowers like leverage, but they also expose you to risks that simply do not exist in the spot market. Understanding the mechanics of both is non-negotiable for survival in the 2026 market.
What Is Spot Trading?
Spot trading is the simplest form of commerce. It is "on the spot" settlement. When you buy Bitcoin on the Spot market, you take actual delivery of the digital coins.
You own them. You can withdraw them to a hardware wallet, send them to a friend, or use them to buy coffee. In the Perps vs Spot comparison, Spot is the clear winner for safety and simplicity.
The biggest advantage is the lack of liquidation risk. Even if Bitcoin drops 99%, you still own the Bitcoin. You are never forced to sell. You can simply wait for the market to recover, making it the only logical choice for long-term investors or "HODLers" who want to sleep soundly at night.
What Are Perpetual Futures?
Perpetual Futures are a unique crypto invention. They are contracts that track the price of the asset, but they never expire (unlike traditional futures). When you trade Perps, you never touch the actual Bitcoin.
You are betting on the price movement. Because you don't need to take delivery, exchanges allow you to use "Leverage." This separates it from Spot trading, where you typically need 100% of the cash upfront to buy the asset.
What Are the Benefits of Using Leverage?
The primary allure of the Perps vs Spot debate is capital efficiency. Leverage allows you to do more with less.
Imagine you have $1,000 to trade.
- On Spot: If Bitcoin goes up 10%, you make $100.
- On Perps (10x Leverage): You control a $10,000 position. If Bitcoin goes up 10%, you make $1,000. You have doubled your account in a single trade.
Leverage also allows for "Shorting." In Spot, you can only make money if the price goes up. With Perps, you can sell contracts you don't own, allowing you to profit when the market crashes. This makes Perps essential for hedging a portfolio during a bear market.
What Is a Margin Call?
With great power comes great responsibility, and in crypto, that responsibility is maintaining your margin. A Margin Call is the warning shot before the disaster.
When you trade with leverage, you must keep a certain amount of collateral (Margin) in your account to keep the trade open. If the price moves against you, your margin balance shrinks.
A Margin Call occurs when your equity falls below the "maintenance margin" requirement. The exchange is effectively telling you: "Add more money immediately, or we will close your trade." In the fast-moving crypto market, margin calls often happen seconds before a total liquidation, giving traders very little time to react.
What Is Liquidation Risk?
This is the danger zone that Spot traders never have to worry about. In Spot trading, your account balance only goes to zero if the asset goes to zero (which is rare for major coins).
In Perp trading, your account can go to zero even if the asset only drops 5% or 10%. If the price moves against your leveraged bet and you fail to meet the margin call, the exchange forcefully closes your position.
This is called Liquidation. You lose your entire collateral instantly. The exchange takes your money to ensure the winner on the other side of the trade gets paid. This binary outcome—win big or lose everything—is the defining risk of the Perps vs Spot dynamic.
How Do I Manage Risks in Crypto Trading?
Because Perps are dangerous, risk management is not optional; it is survival.
1. Use Stop-Losses: Never open a leveraged trade without a hard Stop-Loss order. This automatically sells your position if the price drops to a specific level, capping your loss at 1% or 2% of your portfolio rather than 100%.
2. Isolated vs. Cross Margin: Always use "Isolated Margin" when starting out.
- Cross Margin: Uses your entire wallet balance as collateral. A bad trade can wipe out your whole account.
- Isolated Margin: Only risks the specific amount you allocated to that single trade.
3. Position Sizing: Just because you can use 100x leverage doesn't mean you should. Professional traders rarely use more than 3x or 5x leverage. High leverage is gambling, not trading.
What Are the Hidden Costs of Perps?
The most critical difference in the Perps vs Spot debate is the "Funding Rate." Since Perps never expire, a mechanism is needed to keep the contract price close to the real Spot price.
This mechanism is a fee exchanged between traders every 8 hours. If the market is bullish, Longs pay Shorts. If you hold a Perp position for weeks, these fees can bleed your account dry. Spot positions have no ongoing fees; you can hold them for ten years for free.
How Do I Start Trading Perps?
If you have weighed the risks and are ready to trade, the process is straightforward but requires specific steps.
Step 1: Choose a Derivatives Exchange
You need a platform that supports futures, like BYDFi. Not all exchanges offer this feature due to regulations.Step 2: Transfer Funds
Most exchanges have separate wallets for "Spot" and "Futures/Derivatives." You must transfer your USDT or BTC from your Spot wallet to your Futures wallet.Step 3: Select Your Pair and Leverage
Choose the asset (e.g., BTC/USDT). Then, select your leverage slider. Start low (e.g., 2x or 3x) to get comfortable with the volatility.Step 4: Place Your Order
Decide if you are going Long (betting up) or Short (betting down). Enter your amount, set your Stop-Loss immediately, and confirm the order.Conclusion
Ultimately, the Perps vs Spot debate isn't about one being "better" than the other. It is about matching the tool to the job. Spot is for owning and sleeping well. Perps are for trading and active income.
Most professional traders use both. They keep their long-term savings in Spot cold storage and use a small portion of funds to hedge or speculate on Perps. Register at BYDFi today to access a platform that integrates both Spot and Derivatives markets in one seamless interface, giving you the power to choose the right strategy for every market condition.
Frequently Asked Questions (FAQ)
Q: Can I go short on Spot?
A: No. Spot trading only allows you to buy and sell what you own. To "Short" (profit from price drops), you must use Perps or Margin trading.Q: Do I need a wallet for Perps?
A: No. Perps are traded entirely within the exchange's internal ledger. You do not need a MetaMask or Ledger wallet to trade futures.Q: Are taxes different for Perps vs Spot?
A: In many jurisdictions, yes. Spot trading is often treated as property (Capital Gains), while frequent Perp trading might be classified as business income or gambling winnings depending on your country. Always consult a tax professional.2026-02-02 · 3 days ago0 053
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