Binance has placed four digital assets under the monitoring tag, citing findings from the latest routine assessments under the monitoring tag as of June 5th, with four digital assets under the monitoring tag: Beefy (BIFI), Stafi (FIS), KMODO (KMD) and measurable data tokens (MDT). The monitoring tag specification identifies tokens that cannot meet the exchange listing criteria, increase volatility, increase risk, or exchanges.
The announcement, published on Binance’s official platform, outlines key valuation metrics that contribute to the decision and discuss its impact on token holders and traders.
Meaning of listed tokens and trader monitoring tags
Tokens that receive monitoring tags are more monitored. Binance applies this classification after a full internal review.
This evaluation process takes into account multiple indicators. These include project team stability and transparency, continuous development activities, token market performance, network reliability, community responsiveness, and overall regulatory compliance.
According to Binance, signs of a decline in standards in these areas could lead to more thorough investigations and potential removal from the platform.
In its latest review, Binance found that BiFi, FIS, KMD, and MDT ensure this additional scrutiny under the monitoring tag framework. Binance did not state any immediate plans to list these tokens, but it was clear that such tokens would receive regular evaluations. If they do not show improvements to the key risk factors identified, they may be removed.
Related: Binance publishes monthly monitoring tag reviews to increase transparency in dangerous tokens
User requirements and visibility
Binance requires users who wish to trade monitoring tag assets to complete the risk approval process. Every 90 days, traders are given a risk recognition quiz on both the Spot and Margin platforms and must agree to Binance’s Terms of Use. These measures are intended to help users understand the risks associated with trading assets under supervision.
Additionally, monitoring tags are clearly visible across multiple areas of the platform, including the Spot and Margin trading page and the Market Overview section. Each tagged token also features a warning banner that notifies the user of its status.
Binance launches the Altcoin RiquidityBoost program at the same time
This monitoring tag update occurs at the same time that Binance launches the new spot Altcoin LisicidityBoost program.
Starting its weekly performance reviews on June 17th, the program aims to improve liquidity across a range of selected Altcoin trading pairs on the exchange. Participating liquidity providers will receive a rebate based on the manufacturer’s volume performance.
Related: What’s next for $Puffer and $Moodeng after Binance Alpha Spotlight?
Here’s how the tier works: Tier 1 requires a 0.5% manufacturer volume share and offers a -0.005% rebate. Tier 2 requires a 1.0% manufacturer volume share and offers a -0.010% rebate. A summary of Binance’s programme shows that this initiative is set up to reduce slippage of active participants in eligible trading pairs and to enhance trade execution.
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