Binance Removes Risk Tags From Five Altcoins Following Positive Reviews

On July 9, 2025, Binance, the world’s largest cryptocurrency exchange, announced significant updates to the labels of several altcoins. The exchange removed the “Monitoring Tag” for Zcash (ZEC) and the “Seed Tag” for Ethena (ENA), Pyth Network (PYTH), Bittensor (TAO), and Wormhole (W). This decision followed thorough evaluations indicating that these five altcoins no longer required risk warnings. The label update took effect immediately, with all existing Binance services related to these altcoins continuing as usual.

The removal of the “Monitoring Tag” from Zcash suggests that it is no longer subject to close monitoring for volatile price movements. Conversely, the “Seed Tag,” which is reserved for projects at developmental stages, has been removed from Ethena, Pyth Network, Bittensor, and Wormhole. This signifies their progression beyond this category, indicating that these projects have matured and are now fully compliant with Binance’s listing criteria. While the label removal does not imply zero risk of delisting or price volatility, it does reflect positive results from recent reviews. Binance keeps its label system updated to alert users about potential risks, ensuring a transparent and secure trading environment.

Binance’s evaluation criteria for altcoins are comprehensive and multi-layered. The exchange considers several factors in each review, including the project team’s dedication, the quality of developmental activities, trading volume and liquidity, network security, transparent communication, response to regular audits, adherence to ethical standards, regulatory compliance, supply changes, ownership structure, revisions in the core team, and community feedback. This approach aims to promote value-added growth for new altcoin projects and provide users with a healthy trading environment. During ongoing evaluations, labels might be reapplied, or new ones may be added to other altcoins.

Binance’s recent move to update altcoin labels is part of a broader strategy to enhance transparency and protect investors. By adding tokens such as BakeryToken (BAKE) and IDEX (IDEX) to the monitoring tag, Binance aims to provide users with clearer information about the risks associated with trading these assets. This initiative is likely to influence other exchanges to maintain competitive standards and improve their monitoring and risk management strategies. The decision to highlight trending coins such as $FLOKI and $MAGIC as "Top Movers" on its dashboard further underscores Binance's commitment to keeping users informed about market trends and providing a dynamic and responsive trading platform.

However, the update has not been without its challenges. Altcoins such as HIFI, BMT, CHESS, SOON, and OBOL experienced a sudden and significant drop in value, shocking investors and raising concerns about market volatility. This incident highlights the inherent risks associated with trading altcoins and the need for exchanges to implement robust monitoring and risk management strategies. The recent updates by Binance reflect a broader trend in the cryptocurrency market towards increased regulation and transparency. As the market continues to evolve, exchanges like Binance are playing a crucial role in shaping the future of digital assets. By taking proactive measures to monitor and label altcoins, Binance is setting a new standard for the industry, one that prioritizes investor protection and market stability.