In a recent move to safeguard its user base against volatile cryptocurrencies, Binance has expanded its Watchlist by including newly identified high-risk altcoins. These additional digital assets are now under closer observation due to their potential to face delisting in the future, with the commencement date being April 3, 2024. Among the newly tagged cryptocurrencies are Ellipsis (EPX), ForTube (FOR), Unfi Protocol DAO (UNFI), Waves (WAVES), and Wrapped NXM (WNXM).
Binance Tags Altcoins with Increased Risk
The Watchlist serves as Binance’s measure to differentiate cryptocurrencies with heightened volatility and risk from its more stable counterparts. Altcoins that make it to this list are under continuous scrutiny and undergo regular evaluations by the exchange. Binance’s review process encompasses several aspects, such as the project team’s dedication, developmental activity, trading liquidity and volume, network reliability, and cooperation with due diligence inquiries.
The altcoins on the Watchlist are assessed to determine their alignment with Binance’s listing standards. Should they fail to satisfy these standards, they might be delisted. Despite the increased monitoring, Binance ensures that other services connected to these cryptocurrencies remain unaffected. To caution traders, a risk warning is displayed alongside the altcoins’ trading pairs on the platform.
Comprehensive Tests for Traders
For traders interested in dealing with these marked altcoins, Binance has introduced a mandatory test, which must be retaken every 90 days. This assessment is conducted via Binance Spot and Binance Margin trading platforms to affirm that traders are educated on the risks of trading these specific altcoins. This initiative underscores Binance’s commitment to fostering an informed community within the trading ecosystem.
Points to Take into Account
- Binance’s Watchlist is designed to identify altcoins with heightened risk and volatility.
- Regular evaluations of Watchlisted altcoins include an assessment of project commitment and responsiveness.
- Trading Watchlisted altcoins on Binance necessitates passing a knowledge test every 90 days.
Binance’s inclusion of new altcoins on its Watchlist underscores its strategy to ensure a secure and honest trading environment. This proactive approach by the cryptocurrency exchange aims to curtail the unpredictability associated with certain altcoins, ultimately encouraging a more robust and dependable market for participants.