After announcing a monitoring tag on Thursday, Binance, the largest crypto exchange on trading volume metrics, triggered a free fall for four altcoins.
Popular exchanges’ actions to list, delist, or put tokens on their catalog on the spot tend to cause price fluctuations.
In a Thursday announcement, the Binance exchange said it would extend its monitoring tag to four tokens in its catalog: Beefy (BIFI), StaFi (FIS), Komodo (KMD), and Measurable Data Token (MDT).
“Based on recent reviews, Binance will extend the Monitoring Tag to include more tokens on 2025-06-05,” read the announcement.
In the immediate aftermath, token prices fell dramatically, with some recording double-digit losses.
The turnout is unsurprising given the implication of monitoring tags for altcoins on popular crypto exchanges. Specifically, a monitoring tag puts a token at the cusp of delisting, contingent on subsequent evaluation.
Assigning a Monitoring Tag to a token indicates that the token exhibits higher volatility and risks than other listed tokens on the platform.
“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.
This tag warns traders and investors about potential issues that could affect the token’s stability or compliance with Binance’s listing criteria.
Notably, a Monitoring Tag differs slightly from a seed tag, which also earmarks tokens susceptible to higher volatility and risks than other listed tokens.
Based on Binance’s review criteria, users looking to trade the four altcoins with a Monitoring Tag must pass a quiz every 90 days on the Binance Spot and/or Binance Margin platforms and accept the Terms of Use.
The quizzes will ascertain that users know the risks before trading tokens with the Monitoring Tag.
“Users may find the Monitoring Tags and on the corresponding Binance Spot and Binance Margin trading pages, as well as on the Markets Overview page. A risk warning banner will also be displayed for all tokens with the Monitoring Tags,” Binance articulated.
As the fate of BIFI, FIS, KMD, and MDT lies in the balance, Binance will evaluate the team’s commitment to the project and the level and quality of development activity.
It will also observe trading volume, liquidity, stability, and safety of their respective network from attacks.
The projects’ responsiveness to Binance’s periodic due diligence requests will also be critical. The same goes for elements such as material or unjustified token supply increases or tokenomics changes. More importantly, Binance will observe community sentiments.
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