👀It's good to know! What is the "Seed Tag" on Binance? A High-Risk Warning! ⚠️📈
The "Seed Tag" is a warning label that Binance places on certain tokens to alert users about their higher risk. It acts like a traffic signal indicating extreme caution, especially for very new projects or those in early stages of development.
Why does Binance use the Seed Tag?
The main goal is to protect investors. When a token has a Seed Tag, it implies:
* High Volatility: Prepare your wallet for extreme price fluctuations, both up and down.
* Elevated Risks: There is a higher probability that the project may not succeed or face significant challenges. The risk of capital loss is considerable.
* Limited History: These are such recent assets that they lack extensive market history to assess their behavior.
* Emerging Innovation: Although they are projects with great disruptive potential, they are in experimental stages, which brings greater uncertainty.
What does this mean for you?
Binance requires users to accept a risk notice before trading these tokens. This underscores the need to thoroughly research (DYOR) and only invest capital that you are willing to lose. The Seed Tag is a transparency tool to encourage responsible investing in an inherently volatile crypto market.
Binance Support and Binance Academy (Trading Warnings and Risks Section).
