Binance Identifies 10 High-Risk Altcoins for Potential Delisting

Binance, the world's largest crypto exchange, has identified 10 altcoins for close monitoring, with the potential for delisting. This review, set to last around 30 days, reflects Binance's ongoing efforts to enhance market quality.

Among the 10 altcoins are aergo (AERGO), Alpaca Finance (ALPACA), AirSwap (AST), Badger DAO (BADGER), BurgerCities (BURGER), COMBO (COMBO), NULS (NULS), STP (STPT), UniLend (UFT), and VIDT DAO (VIDT). These tokens have been tagged as high-risk due to concerns spanning regulatory uncertainty, low liquidity, or extreme volatility.

Binance has implemented a new requirement for users looking to trade any tokens marked with the Monitoring Tag. To gain access, traders must pass a risk-awareness quiz every 90 days. This measure ensures that users understand the risks associated with these tokens before engaging in trades.

The exchange has emphasized that this shortlisting does not guarantee delisting. Binance will conduct periodic project reviews and decide whether to add or remove the Monitoring Tag based on current findings after the review process.

However, the potential delisting announcement has led to a dip in the values of the 10 cited tokens, posting double-digit losses as investors traded the news.

Notably, tokens with the Monitoring Tag present high risk due to concerns spanning regulatory uncertainty, low liquidity, or extreme volatility. Binance displays this tag on the corresponding Spot and Margin trading pages and the Markets Overview section. Additionally, the exchange shows a risk-warning banner whenever users interact with these tokens.

Citing community feedback, the leading exchange by trading volume said its monitoring tag would now be updated monthly. Nevertheless, it will continue to review the removal of Monitoring and Seed Tags quarterly.

By enforcing this requirement, Binance aims to educate and protect its users, ensuring they make informed decisions. The move reflects the exchange's increasing focus on risk management and compliance in a growing regulatory environment.