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Binance warns of delisting risk for these tokens: is a price drop expected?
Binance has issued a warning that has fueled discussions in the cryptocurrency market. For context, the main cryptocurrency exchange announced plans to extend its Monitoring Tag to 11 tokens, exposing them to the risk of future delisting.
Meanwhile, the affected tokens include Balancer (BAL) and Cortex (CTXC), among others, while Enzyme (MLN) and Horizon (ZEN) will be removed from the risk list. Several market observers see this development as a sign of potential price volatility for the affected tokens.
Binance Adds Tracking Tag to 11 Tokens
By Binance The recent announcement about its Monitoring Tag has sent shockwaves through the cryptocurrency market. Starting July 1, the exchange will add several tokens, including Balancer (BAL), Cortex (CTXC), and Convex Finance (CVX), to its Tracking Tag List
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Meanwhile, as per the announcement, tokens with this tag are considered high risk and are closely monitored for volatility and compliance with Binance’s listing criteria. The newly added tokens to the monitoring tag list are:
Balancer (BAL), Cortex (CTXC), PowerPool (CVP), Convex Finance (CVX), Dock (DOCK), Kava Lend (HARD), IRISnet (IRIS), MovieBloc (MBL), Polkastarter (POLS), Status (SNT), Sun (SUN).
In contrast, Enzyme (MLN) and Horizon (ZEN) will be removed from the monitoring tag list. This change indicates a reassessment of the risks and stability associated with these tokens. However, Binance’s decision to tag these 11 tokens highlights their increased volatility and potential to fail the platform’s listing criteria in the future.
Meanwhile, according to Binance, the Monitoring Tag serves as a warning that listed tokens are under scrutiny and may be removed if they fail to meet certain standards. These standards include project engagement, development activity, trading volume, network stability, public communication, and ethical conduct.
Binance emphasizes that the Tracking Tag aims to maintain a healthy and sustainable system cryptocurrency ecosystem.
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Price Crash Coming?
The introduction of the Tracking Tag for these tokens has significant implications for investors. Historically, announcements of this nature by major cryptocurrency exchanges like Binance tend to impact market sentiment and token performance. Positive announcements typically boost market sentiment, while warnings and potential delistings can weigh on investor sentiment.
In the meantime, the affected tokens may experience increased price volatility and reduced trading volume as investors respond to perceived risk. Tokens under the Monitoring Tag are also subject to additional trading restrictions on Binance.
Additionally, users must complete a quiz every 90 days to trade these tokens, ensuring they understand the risks involved. This added level of scrutiny is intended to protect users and promote informed trading decisions.
The announcement highlights the importance of due diligence in the rapidly evolving cryptocurrency market. Investors need to stay informed about the status and compliance of their investments, especially in light of such warnings from major exchanges. In other words, Binance’s Monitoring Tag criteria emphasizes the importance of project transparency, network stability, and ethical conduct.
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