Binance Removes Seed Tag From Five Altcoins

On July 21, 2025, Binance, a prominent cryptocurrency exchange, announced the removal of the Seed Tag from five notable altcoins: Bonk (BONK), EigenLayer (EIGEN), ether.fi (ETHFI), Pudgy Penguins (PENGU), and Pepe (PEPE). This decision follows a thorough evaluation of these projects and marks a significant shift in their categorization on the platform. Previously, these altcoins were labeled as new and potentially risky assets, but with the removal of the Seed Tag, they are now considered to have progressed beyond their initial stages.

The Seed Tag is an alert system used by Binance to indicate newly added projects with potentially high price volatility. The presence of this tag provides users with insights into the risk level of the coin on the trading screen. The removal of the Seed Tag suggests that these projects have successfully undergone Binance’s rigorous evaluations and are now deemed more stable and less risky.

Investors holding Bonk, EigenLayer, ether.fi, Pudgy Penguins, and Pepe will experience this change starting July 21. They will no longer see the related warning, allowing them to perform transactions in a standard manner. Binance emphasizes that this alteration is limited to the tag adjustment and assures users that listing and other operations will continue as usual.

Before updating the Seed Tag status, Binance examines several critical aspects of projects. These include the dedication of the project team, the quality of development activities, liquidity, and network security. Additionally, factors such as community engagement, compliance with regulatory advancements, and unexpected increases in coin supply are part of their checklist. The exchange maintains transparency by routinely sending out “due diligence” requests. The responses from projects to these requests play a crucial role in their decisions. The five altcoins in question have met the required standards in the latest assessment, leading to the confirmed removal of the Seed Tag on July 21, 2025.

Despite this progress, Binance advises its users that BONK, EIGEN, ETHFI, PENGU, and PEPE remain susceptible to market volatility and recommends conducting thorough research prior to investments. The decision to lift the Seed Tag from these tokens is likely to have a positive impact on their market performance. Investors often view the removal of the Seed Tag as a vote of confidence from the exchange, which can lead to increased trading activity and potentially higher prices for the tokens. This development is particularly significant for tokens like BONK and PEPE, which have gained popularity in recent months due to their meme coin status and community support.

The removal of the Seed Tag from EIGEN is also noteworthy, as it is a token associated with the EigenLayer protocol, which has been gaining traction in the Ethereum ecosystem. EigenLayer is a restaking protocol that allows users to stake their Ethereum tokens and earn additional rewards. The investment by a16z, a prominent venture capital firm, in EigenLayer further underscores the growing interest and confidence in the protocol.

The lifting of the Seed Tag from these tokens is a strategic move by Binance to attract more investors and enhance liquidity in the market. By removing the Seed Tag, Binance is sending a clear message to the market that these tokens are no longer considered high-risk investments and are suitable for a broader range of investors. This move is likely to encourage more trading activity and potentially drive up the prices of these tokens.

In summary, Binance's decision to remove the Seed Tag from BONK, EIGEN, ETHFI, PENGU, and PEPE is a significant development in the cryptocurrency market. It signals a reduced risk perception for these tokens and is likely to have a positive impact on their market performance. This move by Binance is part of its broader strategy to attract more investors and enhance liquidity in the market, ultimately benefiting both the exchange and the tokens involved.