Binance Removes Seed Tag from Five Tokens Boosting Pudgy Penguins 25.41%

Binance has announced the removal of its Seed Tag designation from five tokens: Pepe (PEPE), Pudgy Penguins (PENGU), Bonk (BONK), ether.fi (ETHFI), and EigenLayer (EIGEN). This decision follows a comprehensive review of the projects, which considered factors such as team commitment, development activity, liquidity, network security, and transparency. Regulatory compliance, ethical standards, and community engagement were also taken into account.

The Seed Tag is an in-house risk label used by Binance to indicate that newly listed tokens or projects are more volatile and speculative than established assets. The tag serves as a warning to crypto enthusiasts about the higher risk associated with these coins and requires users to complete quizzes to prove their understanding of the investment risks before trading. The removal of the Seed Tag signifies that Binance is confident in the maturity and risk profile of these projects, deeming them suitable for investment.

Binance's decision to remove the Seed Tag from these tokens is part of its ongoing efforts to promote transparency and long-term, sustainable growth in the crypto ecosystem. The exchange emphasized that while the projects have shown significant progress, they still carry market risks and price volatility. This move is expected to boost investor confidence and potentially attract more investment into these tokens.

The update has sparked mixed reactions on social media platforms, with some users questioning why other tokens were not removed from the crypto exchange’s “red alert” list. One crypto trader on X warned, “These coins are volatile enough without the extra hype, hope traders don’t get burned chasing this.”

Pudgy Penguins (PENGU) was one of the biggest gainers from the announcement, posting a 25.41% surge in price, climbing to $0.03909 from $0.03127 in 7 hours. This puts it just 31% shy of its all-time high of $0.05738. The token, linked to the second-highest ranking NFT projects by market capitalization, has gained more than 34% in the last seven days and rallied an impressive 315% since June 21. On the daily chart, PENGU’s price has almost formed an ascending triangle pattern, bouncing from a low near $0.03032 to as high as $0.03932. The current price hovers around $0.03898, with traders eyeing the $0.040000 resistance level as the next breakout point.

Bonk (BONK) has also recorded a 3.32% increase in the last 24 hours, buoyed by the Binance tag removal news. On the other front, the PEPE memecoin is consolidating at $0.00001419 after Binance’s update, up approximately 2.5% from its intraday highs. Technical analysts spotted the token’s falling wedge pattern on the one-day timeframe chart, an objectively bullish reversal signal.

This development is part of Binance's broader strategy to enhance the transparency and reliability of its platform. By removing the Seed Tag, Binance aims to provide a clearer indication of the risk levels associated with different tokens, helping investors make more informed decisions. The move also underscores Binance's commitment to supporting the growth and development of the cryptocurrency ecosystem by recognizing and rewarding projects that have shown significant progress and stability.

The removal of the Seed Tag does not affect other services related to these tokens on the Binance platform. Investors and traders can continue to access the same range of services, including trading, staking, and other financial products, without any disruption. This ensures that the change in risk classification does not impact the overall user experience or the functionality of the platform.