Recent developments suggest that privacy coins may face delisting from major cryptocurrency exchanges. Monero (XMR), for instance, has experienced setbacks due to rumors and confirmed reports about its potential delisting from Binance and OKX. The same fate could befall other privacy coins and some high-risk, volatile cryptocurrencies.
Exchange Platforms’ Watchlist
Binance, the exchange platform with the largest market volume, recently flagged 12 cryptocurrencies for special attention. These assets are now subject to trading restrictions and are only available to a select group of traders. Notably, Binance has hinted at the possible delisting of 10 out of these 12 cryptocurrencies, all of which fall under its ‘Monitoring Tag’.
Among the cryptocurrencies in question are well-known privacy coins like Monero, Zcash (ZEC), and Firo (FIRO). Other cryptocurrencies such as Aragon (ANT), Keep3rV1 (KP3R), Mdex (MDX), MobileCoin (MOB), Reef (REEF), Vai (VAI), and Horizen (ZEN) have also been flagged. Additionally, GMX (GMX) and SushiSwap (SUSHI) have been tagged as ‘Seed Tag’ due to their higher volatility and risk, as stated in the announcement.
Understanding the ‘Monitoring’ and ‘Seed’ Tags
Binance uses the ‘monitoring’ and ‘seed’ tags to identify cryptocurrencies with higher volatility and risk. The ‘monitoring’ tag is applied to projects under intense scrutiny, with regular reviews that could result in their delisting. Binance has stated that ‘Tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform.’
Interestingly, Monero has exhibited significantly lower volatility than most projects over the past year, raising questions about the criteria Binance is using to categorize it. The ‘seed tag’, on the other hand, is assigned to ‘innovative projects’ with higher volatility and risk. Notably, both GMX and SushiSwap, which are competitors to Binance in the decentralized finance (DeFi) sector, have been tagged as such.
Implications for Investors and Projects
Binance has implemented a policy requiring investors to correctly answer quizzes every 90 days to continue trading cryptocurrencies under the ‘monitoring’ and ‘seed’ tags. Moreover, the exchange will issue warnings for these assets. Given these conditions, the affected projects could encounter liquidity problems in the near future.
However, investors may choose to switch from Binance to alternative platforms to access their preferred cryptocurrencies and privacy coins. In such a volatile landscape, platforms like cryptoview.io can provide valuable insights and data to help investors navigate the market.
