- Binance has launched a novel feature, Seed and Monitoring Tags, to help users identify high-volatility and high-risk tokens more efficiently.
- Users will need to pass quizzes every 90 days and accept the Terms of Use to trade tokens marked with Seed or Monitoring Tags, ensuring they are fully aware of the associated risks.
Binance, a global leader in cryptocurrency trading, is pushing the envelope of risk management with the introduction of Seed and Monitoring Tags. The innovative feature is set to bring a new level of transparency and user awareness to tokens displaying high volatility and risks.
Understanding the Seed and Monitoring Tags
In response to community feedback suggesting difficulties differentiating between tokens listed in the Innovation Zone and Main Trading Zone, Binance has taken a significant step. Effective from July 26, 2023, the platform introduces the Seed Tag and Monitoring Tag.
Binance announced that it will launch Seed Tag and Monitoring Tag on July 26, which are suitable for tokens with high volatility and high risk. Users need to pass the quiz and accept the terms of use. Binance will regularly review projects and update relevant labels based on the…
— Wu Blockchain (@WuBlockchain) July 26, 2023
The Seed Tag supersedes the Innovation Zone, applying to all tokens previously listed in that area. Tokens tagged this way are part of innovative projects but might display greater volatility and associated risks than other listed tokens.
In contrast, the Monitoring Tag is applied to specific tokens that display notably higher volatility and risks compared to other listed tokens. Some of the tokens marked with this tag include Akropolis (AKRO), AirDAO (AMB), Ark (ARK), and Bitshares (BTS), among others.
Both Seed and Monitoring Tags are designed to increase users’ risk awareness and understanding. To trade tokens marked with these tags, users must pass quizzes every 90 days on the Binance Spot and/or Binance Margin platforms. Furthermore, they must accept the Terms of Use. These quizzes are designed to ensure that users comprehend the inherent risks before trading these tagged tokens.
Risk warnings for all tokens bearing Seed Tags and Monitoring Tags will also be displayed on Binance Spot and Binance Margin trading pages, as well as the Markets Overview page.
Ongoing Reviews for Transparency
Binance pledges to conduct periodic project reviews and adjust the relevant Tags accordingly based on their latest findings. Various factors will be considered during these reviews, including the team’s commitment to the project, level of development activity, trading volume and liquidity, network stability, public communication levels, and contribution to a healthy and sustainable crypto ecosystem.
By implementing these innovative tags, Binance reaffirms its commitment to transparency and sustainable growth in the crypto ecosystem, all while prioritizing users’ understanding of risk in their trading journey.
