Global crypto exchange Binance, on Monday, announced that it has added monitoring tags to certain highly-volatile crypto tokens.
Per official announcement, 11 altcoins including Balancer (BAL), Cortex (CTXC), PowerPool (CVP), Sun (SUN), Dock (DOCK), received monitoring tags. The exchange cited that these tokens are highly fluctuating, when compared to other listed cryptos.
“These tokens are closely monitored, with regular reviews conducted,” Binance wrote.
These tags are usually given to crypto projects that have a working product and a certain degree of user adoption. However, these assets come with their own risks, including potential legal and regulatory issues, technological challenges, market volatility, etc.
The platform also warned users that digital assets with these tag indicates its exposure to high risks. “[They] are no longer meeting our listing criteria and being delisted from the platform,” it added.
“Binance will conduct periodic project reviews and decide if the monitoring tag should be added to or removed from tokens as per its latest findings.”
Monitoring Tags Exemption Criteria for Tokens
Further, the exchange listed down criteria for crypto tokens for periodic reviews. It noted that tokens that are committed to a project would be exempted from monitoring tags.
Additionally, the tokens must show some level and quality of development activity, trading volume and liquidity, stability from being attacked from scammers, evidence from getting involved in any fraudulent conduct, among others.
Apart from the tokens added to monitoring tags list, Binance has removed these tags from two altcoins – Enzyme (MLN) and Horizon (ZEN).
Binance introduced monitoring tags in July 2023, for tokens with high volatility and risks. The exchange had set corresponding quizzes to users to gain trading access to these tokens. This is to make sure that users are aware of the risks associated with these volatile assets.
The exchange already added monitoring tags to tokens including Bitshares (BTS), FTX Token (FTT), Linear (LINA), OmiseGo (OMG), Tornado Cash (TORn), among others.
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