- Binance removes Seed Tag from BONK, PEPE, and others, citing improved project maturity.
- Trading access widens as risk quizzes are removed, potentially boosting token participation.
- Binance to continue regular reviews, using Seed Tag as a current risk evaluation tool.
Binance has removed its “Seed Tag” risk warning from a slate of high-profile tokens, including the meme coins Bonk (BONK) and Pepe (PEPE), and infrastructure projects EigenLayer (EIGEN) and ether.fi (ETHFI). The move signals the exchange now views these as more mature and stable assets.
The Seed Tag was introduced as a protective measure for new tokens that might have low liquidity or an uncertain development path, requiring users to complete risk awareness quizzes before being allowed to trade them.
Related: Delisting Fears Mount as Binance Adds ‘Observation’ Tag to BAKE, IDEX, and SLF
What the Seed Tag removal means
Binance stated that the decision to remove the Seed Tag is based on several performance metrics and internal evaluations. These include active developer involvement, frequency of technological updates, trading volume, and liquidity strength. Additionally, security posture and transparency of communication were also weighed, along with compliance with regulatory expectations and consistency in token supply.
Additional indicators included how quickly and effectively projects responded to Binance’s inquiries, the stability of project leadership, and the strength of community support. Collectively, these benchmarks helped determine whether a token was mature enough to lose its Seed Tag designation.
Trading these tokens just became easier
This move has a direct practical impact on users. The need for traders to pass a mandatory risk quiz before accessing these tokens has now been eliminated. This reduction in friction simplifies the trading process and could lead to increased participation and higher daily trading volumes for the affected assets.
Related: Binance to Monitor More Tokens: What Factors Are Driving This Decision?
Binance confirmed that it will continue to assess the risk profile of all listed tokens on a regular basis.
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