On January 2, 2025, Binance, one of the largest cryptocurrency exchanges in the world, announced updates to the Monitoring Tags and Seed Tags as part of its ongoing evaluation process. These changes aim to ensure users are aware of the risks associated with certain tokens listed on this platform.
Changes to Monitoring and Seed Tags
Updates that have been implemented:
The token has been added to the monitoring tag list:
StormX (STMX)
TROY (TROY)
Tokens with Monitoring Tags are identified as having higher volatility and risk compared to other listed assets. These tokens undergo regular review and may be delisted if they do not meet Binance's listing criteria.
The token has been removed from the Monitoring Tag List:
Convex Finance (CVX)
Sun (SUN)
The tokens have been removed from the Seed Tag list:
Arkham (ARKM)
Blur (BLUR)
Jito (JTO)
Celestia (TIA)
Seed Tags, introduced by Binance to identify tokens with higher speculative characteristics, are currently being removed from the tokens listed above after the company's latest review.
Implications for Users
Users trading tokens marked with Monitoring Tags or Seed Tags must pass a risk awareness test every 90 days on Binance's Spot and/or Margin trading platform.
These tests are designed to inform users about potential risks before trading. Additionally, tokens with these tags will come with risk warning banners on trading pages and the Market Overview page.
Monitoring Tags and Seed Tags are part of Binance's ongoing efforts to ensure transparency and protect users in the highly volatile and sometimes tumultuous cryptocurrency market.
Binance's Evaluation Process
Binance regularly evaluates tokens based on criteria such as:
The level of commitment and activity of the project team.
Trading volume and liquidity.
Network security and stability.
Ethical behavior and responsiveness to due diligence requests.
Contribution to a sustainable cryptocurrency ecosystem.
Tokens that do not meet these standards risk being tagged or removed from the platform.