Binance, the world’s largest crypto exchange, has flagged five altcoins for potential delisting.
This decision comes as the exchange added Bluzelle (BLZ), CLV (CLV), SelfKey (KEY), Prosper (PROS), and VITE (VITE) to its Monitoring Tag list, indicating increased scrutiny due to heightened volatility and risks.
Altcoins Crash Due to Risks of Binance Delisting
The Monitoring Tag is Binance’s method of singling out tokens that might not meet its stringent listing criteria anymore. The review criteria are thorough, assessing factors from the team’s commitment to the project, the quality and level of development activity, to the trading volume and liquidity. It also examines the stability and safety of the network and responsiveness to Binance’s periodic due diligence requests.
“Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform,” Binance warned.
Read more: Binance Review 2024: Is It the Right Crypto Exchange for You?
Consequently, this alert triggered a sharp decline in the prices of these altcoins. VITE saw the most substantial impact, plummeting nearly 25%. PROS and CLV followed with drops of 15.74% and 15.22%, respectively.
Despite the market’s downturn, KEY and BLZ demonstrated some resilience. Initially, KEY’s value fell by 9%, but it later recovered, now showing a 7.35% decrease. BLZ also experienced a swift drop of 12%, yet it has largely regained its footing, now down by only 4.54%.
Furthermore, in a contrasting decision, Binance has removed the Seed Tag from two altcoins, Pendle (PENDLE) and Sei (SEI). This adjustment suggests these tokens have stabilized and are now considered less risky. The Seed Tag typically marks newer projects that inherently carry greater volatility and risks.
Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
For those engaging with tokens under either the Monitoring Tag or Seed Tag, Binance requires users to pass specific quizzes every 90 days. These quizzes aim to ensure that traders are fully aware of the risks involved.
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