Binance, the largest crypto exchange by trade volume, has begun the new month with an announcement of an extension of monitoring tags to 11 tokens. These affected tokens face the risk of delisting from the platform if certain guidelines are not met. This announcement has sent ripples through the crypto community as investors reshuffle their portfolios to avoid potential losses.
Binance noted that after an extensive review, it has decided to extend the monitoring tag to Convex Finance (CVX), Sun (SUN), PowerPool (CVP), and others while removing two tokens Enzyme (MLN) and Horizon (ZEN) from the monitoring tag list.
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Binance Adds Monitoring Tag to Highly Volatile Assets
In an announcement dated July 1, crypto exchange giant, Binance revealed a total of 11 tokens that it will attach a monitoring tag to. These tokens include Balancer (BAL), Cortex (CTXC), PowerPool (CVP), Convex Finance (CVX), Dock (DOCK), Kava Lend (HARD), IRISnet (IRIS), MovieBloc (MBL), Polkastarter (POLS), Status (SNT), Sun (SUN).
Binance disclosed that the affected assets demonstrate higher volatility and risks compared to other listed tokens. It added that the tokens are closely watched with reviews and audits conducted regularly. Additionally, Binance warns that these tokens face the possibility of delisting from the platform having failed to meet its listing criteria.
Meanwhile, two tokens including Enzyme (MLN) and Horizon (ZEN) have been dropped from the monitoring tag list. The removal of these two tokens from the list underscores their stability after passing a reassessment.
Binance informed users that they will have to pass a quiz slated every 90 days on its Spot and Margin trading platforms before they can get access to the tokens with the tags. Moreover, Binance stresses that the quizzes are strategic to make sure that users are aware of the risk involved before trading the assets. On the affected tokens’ corresponding Spot and Margin trading pages, a warning banner will be placed to remind users of potential risks.
Possibility of Tag Removal
Binance informed that a periodic project review will be conducted by the exchange over time, to determine if each tagged token has met the laid down criteria and if the monitoring tag should be removed. Some criteria that are considered include, the commitment of the team to the project, trading volume and liquidity, stability and safety of the network, level of public communication, level and quality of development activity, and others.
Ultimately, Binance noted that other services relating to the mentioned tokens will still be available and will not be affected by the update. Investors are closely watching the price reaction of these assets, as announcements like these from major crypto exchanges tend to increase the volatility of the projects.
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