Binance’s monitoring tag on BIFI, FIS, KMD, and MDT sparks sharp price drops, signaling high volatility and potential delisting risks.
Price fluctuations are frequently precipitated by the actions of prominent exchanges to list, delist, or add tokens to their catalogs on the spot.
Binance Implements Monitoring Tags on Four Alternative Cryptocurrencies
The Binance exchange announced on Thursday that it would expand its monitoring tag to apply to four tokens in its catalog: Beefy (BIFI), StaFi (FIS), Komodo (KMD), and Measurable Data Token (MDT).
“Based on recent reviews, Binance will extend the Monitoring Tag to include more tokens on 2025-06-05,” read the announcement.
Token prices experienced a significant decline in the immediate aftermath, with some experiencing losses of double digits.
The turnout is unsurprising, given the implications of the tag for altcoins on prominent crypto exchanges. In particular, a monitoring tag places a token on the brink of delisting, pending a subsequent evaluation.
Assigning a Monitoring Tag to a token indicates that the token is more volatile and poses a greater risk than other listed tokens on the platform.
“Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform,” Binance warned.
Traders and investors are cautioned by this designation regarding potential issues that could impact the token’s stability or compliance with Binance’s listing criteria.
It is important to note that this tag is slightly different from a seed tag, which also identifies tokens more susceptible to higher volatility and hazards than other listed tokens.
What Users of Binance Should Be Aware Of
Users wishing to trade the four altcoins with a Monitoring Tag must complete a quiz on the Binance Spot and/or Binance Margin platforms every 90 days and agree to the Terms of Use, per Binance’s review criteria.
Before trading tokens with the Monitoring Tag, the exams will verify that users are aware of the risks.
“Users may find the Monitoring Tags and on the corresponding Binance Spot and Binance Margin trading pages, as well as on the Markets Overview page. A risk warning banner will also be displayed for all tokens with the Monitoring Tags,” Binance articulated.
Since the future of BIFI, FIS, KMD, and MDT is uncertain, Binance will assess the team’s dedication to the project and the quality and quantity of development activity.
It will also monitor their respective networks’ stability, liquidity, trading volume, and safety in response to assaults.
The projects’ ability to respond to Binance’s periodic due diligence requests will also be crucial. The same principle applies to elements such as changes in tokenomics or material or unjustified token supply increases. More importantly, Binance will monitor the sentiments of the community.
