- Binance flags BIFI, FIS, KMD, MDT with Monitoring Tag for higher risk scrutiny.
- Users must pass risk quizzes to trade Monitoring Tag tokens every 90 days.
- Binance launches LiquidityBoost to reward altcoin market makers with rebates.
Binance has placed four digital assets, Beefy (BIFI), StaFi (FIS), Komodo (KMD), and Measurable Data Token (MDT), under its Monitoring Tag as of June 5, citing findings from its latest routine assessments. The Monitoring Tag designation identifies tokens that may display elevated volatility, carry increased risk, or fail to meet the exchange’s listing standards.
The announcement, published on Binance’s official platform, outlines major evaluation metrics that contributed to the decision and discusses its implications for token holders and traders.
What the Monitoring Tag Means for Listed Tokens and Traders
Tokens receiving the Monitoring Tag are subjected to enhanced oversight. Binance applies this classification after full internal reviews.
This evaluation process takes into account multiple indicators. These include the stability and transparency of the project team, ongoing development activity, the token’s market performance, network reliability, how responsive the community is, and overall regulatory compliance.
According to Binance, any signs of declining standards in these areas may lead to closer examination and possible removal from the platform.
In its latest review, Binance found that BIFI, FIS, KMD, and MDT warranted this additional scrutiny under its Monitoring Tag framework. While Binance did not state any immediate plans for delisting these tokens, the exchange was clear that such tokens will undergo regular evaluations. They may be removed if they don’t show improvement in the identified key risk factors.
Related: Binance Announces Monthly Monitoring Tag Reviews, Enhancing Transparency for Risky Tokens
User Requirements and Visibility
Binance mandates that users wishing to trade Monitoring Tag assets complete a risk acknowledgment process. Every 90 days, traders must pass a risk-awareness quiz on both Spot and Margin platforms and agree to Binance’s Terms of Use. These measures aim to ensure that users understand the risks involved with trading assets under monitoring.
Additionally, Monitoring Tags are clearly displayed across multiple areas of the platform, including the Spot and Margin trading pages and the Markets Overview section. Each tagged token will also feature a warning banner to notify users of its status.
Binance Simultaneously Launches Altcoin LiquidityBoost Program
This Monitoring Tag update comes at the same time as Binance is launching its new Spot Altcoin LiquidityBoost Program.
This program, which will begin weekly performance reviews on June 17, is aimed at improving liquidity across a range of selected altcoin trading pairs on the exchange. Liquidity providers who participate will receive rebates based on their maker volume performance.
Related: What’s Next for $PUFFER and $MOODENG After Binance Alpha Spotlight?
Here’s how the tiers work: Tier 1 requires a 0.5% maker volume share and offers a -0.005% rebate. Tier 2 requires a 1.0% maker volume share and offers a -0.010% rebate. Binance’s program outline states that this initiative is set to reduce slippage and enhance trade execution for participants active in the eligible trading pairs.
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