Binance, one of the world's leading cryptocurrency exchanges, has identified 10 altcoins for potential delisting and placed them under close monitoring.
In an effort to improve market quality, Binance has initiated a thorough review process that is expected to last about 30 days.
The 10 altcoins that have been shortlisted for potential delisting include Aergo (AERGO), Alpaca Finance (ALPACA), AirSwap (AST), Badger DAO (BADGER), BurgerCities (BURGER), COMBO (COMBO), NULS (NULS), STP (STPT), UniLend (UFT), and VIDT DAO (VIDT).
Tokens bearing the Monitoring Tag are being closely watched due to higher volatility and risks compared to other listed tokens. Binance has introduced a new requirement for users interested in trading these tokens - they must pass a risk-awareness quiz every 90 days to access them on the Spot trading and Margin platforms.
It is important to note that being on the monitoring list does not automatically lead to delisting. Binance will conduct regular project reviews to make decisions on adding or removing the Monitoring Tag based on current circumstances.
Despite this clarification, token holders of the mentioned coins have experienced price drops following the announcement, with double-digit losses observed as investors reacted to the news.
Tokens with the Monitoring Tag are considered risky due to factors such as regulatory uncertainties, low liquidity, and extreme volatility. Binance displays this tag on its trading platforms and provides a risk-warning banner for these tokens.
Binance has committed to updating the monitoring list on a monthly basis to reflect community feedback. Furthermore, the exchange plans to review the removal of Monitoring and Seed Tags quarterly, with new projects being added at the beginning of each month.
By implementing these measures, Binance aims to educate and safeguard its users, ensuring they are well-informed when making trading decisions. This move underscores the exchange's focus on risk management and compliance within the evolving regulatory landscape.
While the market reaction to potential delisting news is common, Binance's decisions have historically had significant impacts on token prices. Conversely, listings on Binance have been known to boost token values, exemplified by the sharp increase in the value of GPS following its recent listing on the exchange.