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Binance Introduces Tracking Labels for Cryptocurrency Tokens with Significant Price Fluctuations
On Monday, global cryptocurrency exchange Binance announced the addition of monitoring tags to specific highly-volatile crypto tokens.
According to the official statement, 11 altcoins, including Balancer (BAL), Cortex (CTXC), PowerPool (CVP), Sun (SUN), and Dock (DOCK), have received monitoring tags. The exchange noted that these tokens exhibit significant fluctuations compared to other listed cryptocurrencies.
“These tokens are under close observation, with regular assessments being carried out,” Binance stated.
Monitoring tags are typically assigned to crypto projects that possess a functional product and a certain level of user engagement. However, these assets carry inherent risks, such as potential legal and regulatory challenges, technological hurdles, and market volatility.
The platform also cautioned users that digital assets marked with these tags indicate a high-risk exposure. “[They] are no longer fulfilling our listing criteria and are being delisted from the platform,” it further explained.
“Binance will perform periodic evaluations of projects and determine whether to add or remove the monitoring tag based on its latest assessments.”
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Criteria for Exemption from Monitoring Tags for Tokens
Additionally, the exchange outlined the criteria for crypto tokens subject to periodic reviews. It mentioned that tokens dedicated to a project would be exempt from monitoring tags.
Moreover, the tokens must demonstrate a certain level and quality of development activity, trading volume, liquidity, resilience against scams, and lack of involvement in any fraudulent activities, among other factors.
In addition to the tokens that received monitoring tags, Binance has removed these tags from two altcoins – Enzyme (MLN) and Horizon (ZEN).
Binance introduced monitoring tags in July 2023 for tokens characterized by high volatility and risks. The exchange implemented corresponding quizzes for users to gain trading access to these tokens, ensuring that users are informed about the risks linked to these volatile assets.
The exchange has previously assigned monitoring tags to tokens such as Bitshares (BTS), FTX Token (FTT), Linear (LINA), OmiseGo (OMG), and Tornado Cash (TORn), among others.
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