Binance, a leading cryptocurrency exchange, has initiated a significant update to its Tracking Label and Seed Label system for several altcoins. The exchange has added five new altcoins to its Tracking Label category, which include Bluzelle (BLZ), CLV (CLV), SelfKey (KEY), Prosper (PROS), and VITE (VITE). Meanwhile, it has decided to remove the Seed Label from Pendle (PENDLE) and Sei (SEI).
What Do These Labels Mean for Traders?
Tracking Labels indicate higher volatility and risk associated with specific altcoins on Binance. These altcoins undergo regular assessments and may face delisting if they do not meet the exchange’s criteria. Conversely, the Seed Label is designated for innovative projects that also demonstrate elevated levels of volatility and risk.
How Does Binance Ensure User Safety?
The modifications regarding Tracking and Seed Labels are effective immediately, and Binance reassured users that other services for these altcoins will remain unchanged. To promote user safety, Binance requires traders to complete a quiz about altcoins with Tracking or Seed Labels every 90 days, enabling them to continue trading on successful completion.
Key takeaways from Binance’s recent updates include:
- Introduction of Tracking Labels for five new altcoins.
- Removal of the Seed Label from two altcoins.
- Regular risk assessments and quizzes mandated for user comprehension.
- Commitment to maintaining a sustainable cryptocurrency market.
These strategic updates by Binance are aimed at enhancing user awareness and fostering a more transparent trading environment, ultimately contributing to the stability of the cryptocurrency landscape.