Binance, one of the world's largest cryptocurrency exchanges, has updated its risk warnings for some altcoins. According to the exchange's statement, a total of nine cryptocurrencies have been added to the "Monitoring Tag" category, while existing tags have been removed for some assets. The decision was made following the platform's regular review process of projects. Under the new regulations, Contentos (COS), Dego Finance (DEGO), Ampleforth Governance Token (FORTH), FUNToken (FUN), Hooked Protocol (HOOK), Loopring (LRC), MOBOX (MBOX), Orchid (OXT), and the popular meme coin dogwifhat (WIF) will now carry the Monitoring Tag. This tag indicates that these projects have higher volatility and risk compared to other listed assets. Assets with the Monitoring Tag are more closely monitored by Binance. There is a possibility that these projects may be delisted from the platform if they do not meet the exchange's listing criteria. Therefore, this tag is generally seen as a risk warning for investors.
Risk Tag Removed for FLOW
A positive development occurred as part of the update. Binance removed the Monitoring Tag previously applied to Flow (FLOW). Additionally, the “Seed Tag” used for Ondo (ONDO) and Virtuals Protocol (VIRTUAL) was also removed from the platform.
The Seed Tag is generally known as a warning system used for early-stage or relatively new projects. The removal of this tag can be interpreted as the projects in question beginning to meet certain criteria.
Binance Users Require Exam
Users who wish to continue trading tokens carrying the Monitoring Tag or Seed Tag must fulfill certain conditions. Binance requires investors to complete a risk information exam every 90 days and accept the terms of use in order to trade these assets. The aim of this practice is to enable users to trade more consciously on assets with high volatility.
Initial Price Reactions
Following Binance's announcement, price movements in some altcoins were noteworthy. Contentos (COS) is trading at around $0.001 at the time of writing, having lost approximately 3% in value over the last 24 hours. DEGO has fallen by 12.9%. Ampleforth Governance Token (FORTH) has dropped by approximately 11.8%, FUN by 3.09%, HOOK by 7.7%, MBOX by 3.7%, and OXT by 3.2%. Dogwifhat (WIF), one of the popular meme coins of the Solana ecosystem, is trading at around $0.20 and has fallen by approximately 5% in the last 24 hours. You can see the declines in some altcoins in the following charts:
Market analysts state that Monitoring Tag decisions can generally increase selling pressure in the short term, but prices may recover in the long term depending on the project's development performance.
Binance explained its evaluation criteria.
Binance stated that it considers many factors when determining whether a project will be included in the Monitoring Tag or Seed Tag program. These criteria include the intensity of development activities, transaction volume and liquidity levels, network security, team commitment to the project, and the level of communication with the community.
