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Binance to introduce a mechanism that will help users differentiate high volatility and risk tokens



The crypto exchange Binance has introduced a mechanism to help users differentiate between tokens in the innovation and main trading zone. This mechanism is a Seed Tag and Monitoring Tag which will go live on the platform on July 26, 2023. 

To gain access to tokens on each category, users will be required to pass quizzes on the Binance Spot and/or Binance Margin platforms every 90 days. As well they will have to accept the corresponding Terms of Use. 

Binance sets up the quizzes as a means to ensure users are aware of the risks before trading the tokens bearing Seed Tags and Monitoring Tags. 

Three pages on the platform where Users can find these include the Binance Spot trading page, the Binance Margin trading page, and the Markets Overview page. 

Importantly, a risk notification will be displayed for all tokens with the Seed Tags and Monitoring Tags, Binance said.

Further, all tokens listed in the innovation zone will now be replaced by the Seed Tag. This will apply to subsequent listings that will fall under innovative projects but may have higher volatility and risks compared to other tokens.

Finance outlined over 20 tokens outlined where the Monitoring Tag will be applied. According to Binance, they exhibit notably higher volatility and risks compared to other listed tokens. These tokens include FTC Token (FTT), Tornado Cash (TORN), Voyager (VGX), and Ark (ARK).

However, Binance said it will conduct project reviews from time to time ‘to decide if the relevant Tags should be added to or removed from the tokens as per its latest findings.”

Criteria for the review include team commitment to the project, development activity, trading volume, and liquidity, network security and smart contract stability, level of public communication, and other requirements.

Binance stated that while this development arise, “other services related to the aforementioned tokens will not be impacted.”

Read also; 

UK Data Regulator Probes Worldcoin’s Iris Scan Project

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