Binance Expands Monitoring Tag List to Include BETA, BOND, WTC, and XEM
Binance has recently added Beta Finance (BETA), BarnBridge (BOND), Waltonchain (WTC), and NEM (XEM) to its Monitoring Tag list as of October 4, 2023. This list serves as a risk indicator for tokens with higher volatility and risk levels.
Monitoring Tag Identifies Tokens with Elevated Volatility
The Monitoring Tag feature on Binance is designed to flag tokens that exhibit greater volatility and risk compared to other listed assets. Binance regularly reviews these tagged tokens based on various criteria, including the project team’s commitment, development activity, trading volume, liquidity, network stability, and security against attacks. Tokens that consistently fail to meet these criteria may face delisting from the platform.
User Quizzes and Risk Warning for Trading Tagged Tokens
To trade these tagged tokens on Binance’s Spot and Margin trading platforms, users are required to pass quizzes every 90 days. These quizzes aim to ensure traders are fully aware of the risks associated with trading such volatile assets. Additionally, a risk warning banner is displayed on the trading pages for these tokens, providing an extra layer of caution for traders.
Industry Trend Towards Increased Scrutiny and Risk Management
Binance’s decision to expand its Monitoring Tag to include these four tokens aligns with the industry-wide trend of heightened scrutiny and risk management. Coinbase announced the suspension of trading for BarnBridge (BOND) and other tokens on September 6, 2023. Similarly, OKX revealed plans to delist several trading pairs, including XEM, for not meeting its listing criteria on September 21-26.
A Tool for Effective Risk Management and Compliance
Binance is committed to conducting periodic reviews of the Monitoring Tag status for tokens. This demonstrates the exchange’s dedication to fostering a transparent and sustainable cryptocurrency ecosystem. The Monitoring Tag serves as a valuable tool for both Binance and its users to manage risk effectively. Its expansion to include more tokens reflects a maturing market that prioritizes risk management and compliance.
Hot Take: Binance Strengthens Risk Management Measures with Monitoring Tag Expansion
Binance’s decision to include Beta Finance (BETA), BarnBridge (BOND), Waltonchain (WTC), and NEM (XEM) in its Monitoring Tag list showcases the exchange’s commitment to enhanced risk management. By flagging tokens with higher volatility and risk, Binance aims to protect traders from potential losses. The addition of these tokens aligns with a broader industry trend towards increased scrutiny and compliance measures. It reinforces the importance of understanding the risks associated with trading volatile assets. Binance’s Monitoring Tag serves as a crucial tool for both the exchange and its users to effectively manage risk in an evolving crypto market.
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