Monero (XMR) recently suffered losses, facing rumors and factual news regarding its delisting from Binance and OKX, respectively. Other privacy coins may face a similar fate, together with some high-volatility and risky cryptocurrencies, according to Binance.
In a recent announcement, the leading exchange by market volume listed 12 cryptocurrencies under watch. These assets will hold special tags limiting their trading for an exclusive selection of traders.
In particular, Binance threatens to delist 10 of the 12 under its ‘Monitoring Tag.’ The well-known privacy coins Monero, Zcash (ZEC), and Firo (FIRO) are featured in the list.
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Moreover, Aragon (ANT), Keep3rV1 (KP3R), Mdex (MDX), MobileCoin (MOB), Reef (REEF), Vai (VAI), and Horizen (ZEN) are also mentioned. Together with GMX (GMX) and SushiSwap (SUSHI) under the ‘Seed Tag,’ due to “higher volatility and risks,” the announcement stated.
What are Binance’s ‘monitoring’ and ‘seed’ tags?
As described by Binance, coins under the ‘monitoring’ and ‘seed’ tags have higher volatility and risks than other cryptocurrencies. The former is for closely monitored projects, with constant reviews threatening their delisting from the platform.
“Tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform.”
— Binance
However, Monero has shown considerably lower volatility than most projects in the previous year. This raises questions about what risks Binance is considering to tag it under this category.
Meanwhile, the ‘seed tag’ is meant for “innovative projects,” in Binance’s words, with higher volatility and risks. Notably, both GMX and SushiSwap are competitors to the leading exchange, providing trading services in decentralized finance (DeFi).
Binance will require investors to answer quizzes correctly every 90 days to allow trading cryptocurrencies under the ‘monitoring’ and ‘seed’ tags. The exchange also communicated they will display a warning for these assets everywhere.
All things considered, the aforementioned projects might face liquidity issues in the coming days. Nevertheless, Investors could decide to migrate from Binance to alternative platforms and competitors to access their desired cryptocurrencies and privacy coins.
