This decision comes as the exchange added #Bluzelle (BLZ), #CLV (CLV), #SelfKey (KEY), #Prosper (PROS), and $VITE (VITE) to its Monitoring Tag, signaling increased attention due to high volatility and associated risks.
The Monitoring Tag is Binance's method of highlighting assets that may no longer meet its listing criteria. The review process is comprehensive, evaluating factors ranging from the team's commitment to the project, the quality and level of development activity, to trading volume and liquidity. It also assesses network stability and security, as well as the response to Binance's periodic due diligence requests.
As a result, this alert triggered a significant drop in the prices of these altcoins. #VITE was the hardest hit, plummeting nearly 25%. PROS and CLV followed with drops of 15.74% and 15.22%, respectively.
Despite the market downturn, #KEY and #BLZ showed some resilience. Initially, #KEY dropped 9% but later recovered, now showing a decrease of 7.35%. $BLZ also experienced a sharp 12% drop but largely regained its footing, now only 4.54% down.
In contrast, Binance removed the Monitoring Tag from two altcoins, Pendle $PENDLE and Sei $SEI . This adjustment suggests that these tokens have stabilized and are now considered less risky. The Seed Tag typically marks newer projects that inherently carry higher volatility and risk.
For those interacting with tokens under the Monitoring or Seed Tags, Binance requires users to complete specific quizzes every 90 days. These quizzes aim to ensure that traders are fully aware of the risks involved.
