Binance Expands Monitoring Tag to Include 11 More Altcoins, Sparking Delisting Concerns

Binance Expands Monitoring Tag to Include 11 More Altcoins, Sparking Delisting Concerns

Binance, a leading cryptocurrency exchange, has recently extended its Monitoring Tag to cover an additional 11 altcoins, sparking conversations about the potential for future delistings.

The announcement has negatively impacted the prices of some of these altcoins. Historically, Binance has delisted tokens after tagging them for monitoring, contributing to the current market anxiety.

Why Does Binance Attach Monitoring Tags to Certain Altcoins?

The newly tagged tokens are Balancer (BAL), Cortex (CTXC), PowerPool (CVP), Convex Finance (CVX), Dock (DOCK), Kava Lend (HARD), IRISnet (IRIS), MovieBloc (MBL), Polkastarter (POLS), Status (SNT), and Sun (SUN).

Following the announcement, the market reacted quickly and notably. Cortex (CTXC) experienced an 8.09% drop, PowerPool (CVP) fell by 12.66%, and Dock (DOCK) decreased by 11.71%. Other tagged altcoins saw more moderate declines.

Binance employs the Monitoring Tag to identify tokens that exhibit significantly higher volatility and risk compared to others. This tag serves as a caution to investors that these tokens might not meet Binance’s stringent listing standards in the near future.

“Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform,” Binance warned.

Moreover, to trade these tagged tokens, Binance requires users to complete a quiz every 90 days. This quiz, available on both Binance Spot and Binance Margin platforms, ensures that traders are fully aware of the risks involved. The Monitoring Tags and a prominent risk warning banner are displayed on the relevant trading pages.

The review criteria for these tokens include several key factors: the project team’s dedication, the quality and extent of ongoing development, trading volume and liquidity, and network stability. Binance also assesses the team’s responsiveness to due diligence requests and monitors for any unethical or fraudulent activities.

In a positive turn, Binance announced the removal of Enzyme (MLN) and Horizon (ZEN) from the monitoring list. This update signifies a stable and secure status for these altcoins, alleviating the immediate threat of delisting.