Binance has revised its system for flagging digital assets with added risk, designating Wanchain (WAN) with a “Monitoring Tag” and removing the labels from several other tokens. These adjustments, which took effect on October 9th, might indicate potential delistings down the line and corresponded with a significant price decrease for WAN.
These updates are part of the exchange’s commitment to safeguarding users and ensuring transparency. Some digital currencies will now undergo closer examination, while others have demonstrated sufficient stability and satisfied the criteria of recent risk assessments.
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WAN Plummets to All-Time Low After Binance Adds Monitoring Tag
Binance recently informed its user base that the WAN token has been designated with a Monitoring Tag. This altcoin is integral to the Wanchain network, facilitating cross-blockchain transfers and improving interoperability across diverse blockchain systems.
“Binance will apply the monitoring tag to WAN, remove the monitoring tag for GPS & MBL, and remove the seed tag for BERA, BIO, ZK & ZRO,” according to an official post on X by Binance.
Following the announcement, the price of WAN experienced a sharp decline of approximately 34%. The token’s value fell from roughly $0.10 to $0.06, marking a new historic low.
However, the altcoin subsequently rebounded slightly. At the time of this article, it’s trading at around $0.87, which is down by approximately 14.7% since Binance’s announcement.
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Concurrently, Binance removed the Monitoring Tag from GoPlus Security (GPS) and MovieBloc (MBL). Additionally, Berachain (BERA), BIO Protocol (BIO), ZKsync (ZK), and LayerZero (ZRO) are no longer categorized with the Seed Tag.
The leading cryptocurrency exchange assigns the Monitoring Tag to digital currencies that exhibit increased price fluctuations. These assets remain tradable but are subject to regular evaluations, potentially leading to delisting from the Binance platform if issues persist.
The Seed Tag signifies recently launched or less established ventures characterized by increased risks due to limited functionality or low user acceptance. Both tags serve as clear indicators, advising traders to proceed cautiously.
Digital assets listed under the Monitoring or Seed Tags are required to maintain stringent benchmarks concerning development progress, liquidity levels, security standards, and regulatory adherence. The inclusion of these tags indicates a need for heightened caution among traders.
Binance mandates that users complete a quiz every 90 days to guarantee awareness of the associated risks and compliance with the most current Terms of Use.
“These quizzes are designed to ensure users understand the potential risks involved before trading tokens carrying the Monitoring Tag or Seed Tag,” Binance explained.
The lists are subject to revisions based on assessments evaluating team dedication, liquidity, community participation, code integrity, and responsiveness to due diligence requests. Removal from these classifications often signifies improved fundamentals or resolution of previous concerns.