Altcoins
Binance may soon remove these 11 altcoins
Major cryptocurrency exchange Binance has expanded its tracking tag to cover 11 more altcoins, sparking discussions about potential future delistings.
The price of some of these 11 altcoins suffered after the announcement. This is because, on previous occasions, Binance has delisted some altcoins after applying a tracking tag to them.
Why does Binance associate a tracking tag with certain altcoins?
The newly marked tokens include Balancer (BAL)Cortex (CTXC), PowerPool (CVP), Convex Finance (CVX)Dock (DOCK), Kava Lend (HARD), IRISnet (IRIS), MovieBloc (MBL), Polka Starter (POLS)State (SNT) and Sun (SUN).
Following this announcement, notable market reactions were immediate. CTXC saw a sharp decline of 8.09%, CVP fell by 12.66%, and DOCK also fell by 11.71%. On the other hand, the other tagged altcoins recorded more modest declines.
To know more: Binance Review 2024: Is It the Right Cryptocurrency Exchange for You?
Price/performance ratio CTXC, CVP and DOCK. Source: TradingView
Binance uses the tracking tag for tokens that show significantly higher values volatility and risks compared to others. This tag warns investors that these tokens may not meet Binance’s rigorous listing standards in the near future.
“Please note that tokens with the tracking tag are at risk of no longer meeting our listing criteria and being removed from the platform,” Binance warned.
Additionally, to trade these marked tokens, Binance requires users to periodically pass a quiz every 90 days, available on both the Binance Spot and Binance Margin platforms. This ensures that traders are fully aware of the associated risks. Tracking Tags are displayed on the relevant trading pages and a risk warning banner is also prominently displayed.
The review criteria for these tokens include several important factors, such as project team commitment, the quality and level of ongoing development, trading volume, and the liquidity and stability of the network. The exchange also evaluates responsiveness to its due diligence requests and checks for unethical or fraudulent activity.
To know more: The 12 best altcoin exchanges for cryptocurrency trading in July 2024
On a positive note, Binance has announced that it will remove Enzyme (MLN) AND Horizon (ZEN) from the monitoring list. This update brings about a stable and safe state for these altcoins, removing the immediate threat of delisting.
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