Binance, the world’s largest cryptocurrency exchange, has designated five altcoins for possible delisting.
The decision comes as the exchange added Bluzelle (BLZ), CLV (CLV), SelfKey (KEY), Prosper (PROS) and VITE (VITE) to its monitoring tag list, which has come under scrutiny due to increased volatility and risk. Indicates that it has been strengthened.
Altcoin crash due to risk of Binance delisting
Monitoring tags are Binance’s way of screening tokens that may no longer meet our strict listing criteria. Our review criteria is thorough, evaluating factors ranging from the team’s commitment to the project, the quality and level of development activity, to trading volume and liquidity. We also examine the stability and security of the network and its responsiveness to Binance’s regular due diligence requests.
“Keep in mind that tokens with monitoring tags may no longer meet the listing criteria and risk being delisted from the platform,” Binance warned.
Read more: Binance Review 2024: Is It the Right Crypto Exchange for You?
As a result, this warning triggered a sharp decline in the price of the altcoin. VITE was the most affected, plummeting nearly 25%. PROS and CLV fell 15.74% and 15.22%, respectively.
Despite the market downturn, KEY and BLZ have shown some resilience. The value of KEY initially fell by 9%, but has since recovered and is currently down 7.35%. BLZ also experienced a sharp decline of 12%, but has now recovered significantly, down only 4.54%.
Additionally, in a contrasting decision, Binance removed seed tags from two altcoins: Pendle (PENDLE) and Sei (SEI). This adjustment means that these tokens have stabilized and are now considered less risky. Seed tags typically indicate new projects that inherently carry greater volatility and risk.
Read more: 11 Cryptocurrencies to Add to Your Portfolio Before Altcoin Season
If you participate in tokens under monitoring tags or seed tags, Binance requires users to pass a specific quiz every 90 days. The purpose of this quiz is to ensure that traders are fully aware of the risks involved.
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