Binance, a leading cryptocurrency exchange, has recently applied its monitoring tag to six additional tokens, including Movement Labs’ MOVE. This decision comes in the aftermath of MOVE’s market maker scandal and the project’s subsequent rebranding under the new name Move Industries.

Binance Applies Monitoring Tag to MOVE and Other Tokens

According to a recent announcement, Binance has added the monitoring tag to several tokens, including MOVE. The protocol underwent significant changes, including a rebranding effort and the removal of co-founder Rushi Manche. The exchange stated that tokens with the monitoring tag exhibit higher volatility and risks compared to other listed tokens.

Alongside MOVE, Binance also applied the monitoring tag to Stella’s ALPHA, Hifi Finance’s HIFI, LeverFi’s LEVER, PORTAL, and Rei Network’s REI. These tokens will now be subject to enhanced scrutiny as part of Binance’s guidelines to ensure compliance and assess trading risks.

What Does the Monitoring Tag Mean?

Tokens listed under Binance’s monitoring tag are subject to continuous evaluation. The platform will review each token’s performance to determine whether the tag should remain or if the token risks delisting. If a token fails to meet Binance’s listing criteria or continues to exhibit significant volatility, it could be removed from the exchange entirely.

“Tokens with the Monitoring Tag exhibit notably higher volatility and risks compared to other listed tokens,” Binance noted in its announcement.

Impact on Token Prices

Following Binance’s announcement, several tokens with the monitoring tag experienced price declines. MOVE, which was already facing downward pressure, dropped further, losing over 12% in the past 24 hours. The token, which had seen a 10% decline after its rebrand announcement, is currently trading at $0.15, down nearly 50% over the past month.

Other tokens such as REI, ALPHA, and PORTAL also saw declines. ALPHA fell by more than 5%, REI dropped 12.5%, and PORTAL suffered the largest loss with a 17.1% decrease.

However, not all tokens reacted negatively. HIFI and LEVER managed to buck the trend, posting modest gains of 4.4% and 12.8% in the past 24 hours, respectively.

Trading Restrictions for Tokens with Monitoring Tags

In addition to the heightened risk warning, Binance imposes specific requirements for trading tokens under the monitoring tag. Users must complete a quiz every 90 days on Binance Spot and Binance Margin platforms to continue trading these tokens. Additionally, users are required to periodically accept Binance’s terms of use.

Key Takeaways for Investors

For investors and traders, it’s crucial to understand the implications of a monitoring tag:

  • Higher Risk: Tokens with monitoring tags are considered more volatile and may pose increased trading risks.
  • Potential Delisting: Tokens that fail to meet Binance’s criteria could be removed from the platform.
  • Mandatory Quizzes: Traders must complete periodic quizzes to ensure they understand the risks associated with these tokens.

While trading tokens under the monitoring tag can offer opportunities for significant gains, investors should weigh the risks carefully and utilize proper risk management strategies.

Stay informed about the latest developments in the cryptocurrency market to make educated investment decisions.

Post Views: 4