Binance Flags Four Altcoins for Heightened Risk, Launches Liquidity Boost Program

Binance has flagged four altcoins—Beefy (BIFI), StaFi (FIS), Komodo (KMD), and Measurable Data Token (MDT)—with a Monitoring Tag, indicating heightened risk and the need for closer scrutiny. This decision follows a routine assessment by the exchange, which identified potential issues with these tokens' volatility, market performance, and regulatory compliance. The Monitoring Tag serves as a warning to users about the elevated risks associated with these assets.

Tokens under the Monitoring Tag are subject to enhanced oversight and regular evaluations. Binance considers various factors when applying this tag, including the stability and transparency of the project team, ongoing development activity, network reliability, community responsiveness, and regulatory compliance. Any decline in these areas may result in further scrutiny or even delisting from the platform. While Binance has not announced immediate delisting plans for BIFI, FIS, KMD, and MDT, these tokens will undergo regular reviews to assess their improvement in key risk factors.

To ensure users are aware of the risks, Binance requires traders to complete a risk acknowledgment process every 90 days. This involves passing a risk-awareness quiz and agreeing to Binance’s Terms of Use. Monitoring Tags are prominently displayed across the platform, including on Spot and Margin trading pages and the Markets Overview section, with warning banners for each tagged token.

Simultaneously, Binance has launched its Spot Altcoin LiquidityBoost Program. This initiative aims to improve liquidity across selected altcoin trading pairs by offering rebates to liquidity providers based on their maker volume performance. The program, which begins weekly performance reviews on June 17, includes two tiers: Tier 1 requires a 0.5% maker volume share and offers a -0.005% rebate, while Tier 2 requires a 1.0% maker volume share and offers a -0.010% rebate. The goal is to reduce slippage and enhance trade execution for participants in eligible trading pairs.

By flagging risky altcoins and boosting liquidity for others, Binance demonstrates its commitment to maintaining a secure and efficient trading environment. This dual approach allows the exchange to cater to a diverse range of traders, from those seeking high-risk opportunities to those looking for more stable assets. Binance's proactive measures in risk management and market development underscore its position as a leading player in the cryptocurrency industry, continuously adapting to meet the evolving needs of the market.