Binance, one of the world’s largest cryptocurrency exchanges, has made a new announcement that is of great interest to crypto investors. According to the statement made on October 3, 2024, the platform added 5 altcoins to the Monitoring Tag category, while removing two cryptocurrencies from the Seed Tag list. This development stands out as an important step for investors in terms of identifying risky tokens and revising the exchange’s listing criteria.
What were the altcoins included in the monitoring?
Binance has included the altcoins Bluzelle (BLZ), CLV (CLV), SelfKey (KEY), Prosper (PROS), and VITE (VITE) in the Monitoring Tag category. Tokens in this category are considered to have higher volatility and risk compared to other tokens on the exchange. Binance stated that these tokens are at risk of being delisted, i.e. removed, from the platform. It was also announced that these altcoins with the watch tag will be subject to regular audits every 90 days and may be removed from the list if they do not meet the criteria determined by the exchange.
Binance announced that users must successfully complete the tests presented to them every three months and accept the platform’s terms of use in order to continue trading with these tokens. In addition, a warning banner will be placed on the platform to underline the risks associated with these tokens. In this way, users will be able to consider potential risks before trading.
Some tokens have been removed from the Binance Seed tag
Binance also announced that Pendle (PENDLE) and Sei (SEI) tokens have been removed from the Seed Tag category. Seed Tag is generally used for tokens that represent new and innovative projects. Although these tokens have high volatility and risks, they are considered as projects with potential growth opportunities in the future. The performance of projects on Binance’s Seed Tag list in the market is among the factors that investors closely follow.
However, the removal of Pendle and Sei tokens from the Seed Tag category may mean that these projects are now in a more stable position or that Binance sees less risk in these projects. However, this does not change the fact that there may be significant fluctuations in the price movements of these tokens.
Sharp drop in prices
This announcement by Binance caused significant fluctuations in the markets. While it is known that cryptocurrency prices can easily change with instant news, according to CoinGecko data, there were major sales in altcoins added to the Monitoring Tag. VITE in particular was hit the hardest with a 21% decrease, while Bluzelle (BLZ) lost 10%, Prosper (PROS) 18%, CLV 17% and SelfKey (KEY) 11%. It is thought that these declines are related to investors realizing that these altcoins added to the Monitoring Tag are riskier and reviewing their positions.
Such sudden movements, which are frequently seen in cryptocurrency markets, require investors to be careful and constantly review their portfolios. While Binance’s risk alerts and labeling system are designed to help investors make more informed decisions, it should be noted that sudden changes can always occur in the markets.
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