On October 4th, Binance, a cryptocurrency exchange, announced the addition of four tokens to its “Monitoring” category, indicating closer scrutiny before deciding whether to delist them from the platform.
The four projects include:
1. Beta Finance (BETA): This project was launched on Binance Launchpad at the end of 2021. Since its launch, its price has continuously decreased, and its Total Value Locked (TVL) remains relatively low.
2. BarnBridge (BOND): A DeFi project launched in 2020 that is currently almost inactive, with the SEC investigating the project team.
3. Waltonchain (WTC): A blockchain project that was introduced in 2017.
4. NEM (XEM): A blockchain project that was launched in 2015.
Following the announcement, the prices of these tagged “Monitoring” tokens saw significant declines. It’s clear that these altcoins may face challenges and could have a hard time recovering if delisted by Binance.
Binance recently introduced two categories, “Seed Tag” and “Monitoring Tag,” to the platform to warn users about the risks associated with trading certain cryptocurrencies. Tokens in the “Monitoring Tag” category are considered to have higher risk and volatility compared to others. Consequently, they will be closely monitored by the exchange and subject to regular evaluations. These tokens are at a higher risk of not meeting Binance’s listing criteria and are more likely to be delisted from the platform.
In addition to the four tokens mentioned, other tokens in this category include AKRO, AMB, ARK, BTS, CREAM, DREP, ELF, FTT, GFT, JASMY, LINA, LOOM, MLN, MULTI, OAX, OMG, OOKI, PERL, PNT, REN, SNM, SRM, TORN, VGX, WRX, and YFII.
However, Binance has stated that it will periodically assess projects and decide whether to add or remove tokens from the Monitoring category. Criteria considered during evaluations include the project team’s commitment, development activities and quality, trading volume and liquidity, network stability and security against attacks, smart contract stability, public communication, ability to meet Binance’s periodic review requirements, evidence of unethical behavior, and contributions to a healthy and sustainable cryptocurrency ecosystem.