Binance, the world’s largest cryptocurrency exchange, announced significant updates to its token categorization process, extending its Monitoring Tag to new tokens, removing others, and updating Seed Tags for several assets. These changes will take effect on January 2, 2025, following the platform’s latest project review.
Tokens Added to the Monitoring Tag
The following tokens will now carry the Monitoring Tag, indicating higher volatility and associated risks:
- StormX (STMX)
- TROY (TROY)
Tokens Removed from the Monitoring Tag
The following tokens have shown improved stability and performance and will no longer carry the Monitoring Tag:
- Convex Finance (CVX)
- Sun (SUN)
Tokens Removed from the Seed Tag
The following tokens will have their Seed Tag removed, reflecting their maturation within the ecosystem:
- Arkham (ARKM)
- Blur (BLUR)
- Jito (JTO)
- Celestia (TIA)
What the Tags Indicate
- Monitoring Tag: Tokens flagged with this tag exhibit higher volatility and risks. Binance reviews these tokens periodically to ensure they meet listing criteria. Failure to do so may result in delisting.
- Seed Tag: Typically applied to newer or experimental projects, the removal of the tag signifies these tokens are now more established.
To trade tokens with the Monitoring or Seed Tags, users must complete a risk-awareness quiz every 90 days and accept Binance’s Terms of Use. These measures aim to ensure users are aware of the risks before engaging in trading.
Review Criteria
Binance evaluates the following factors during its periodic project reviews:
- Team commitment to the project.
- Development activity levels and quality.
- Trading volume and liquidity.
- Network security and stability.
- Public communication and responsiveness to due diligence.
- Evidence of ethical conduct and contributions to the crypto ecosystem.
User Guidance
Tokens with Monitoring and Seed Tags will be clearly marked on Binance’s Spot, Margin, and Markets Overview pages, accompanied by a risk warning banner. These updates ensure greater transparency and safeguard users from high-risk investments.
Binance’s ongoing reviews demonstrate its commitment to maintaining a robust and trustworthy trading environment while encouraging sustainable growth in the cryptocurrency ecosystem.
