Binance has removed the risk warning 'Seed Tag' from a range of popular tokens, including the meme coins Bonk (BONK) and Pepe (PEPE), along with infrastructure projects EigenLayer (EIGEN) and ether.fi (ETHFI). This move indicates that the exchange now considers these to be more mature and stable assets.
The Seed Tag was introduced as a protective measure for new tokens with low liquidity or uncertain development roadmaps, requiring users to complete risk awareness tests before being allowed to trade them.
What Does Removing the Seed Tag Mean?
Binance stated that the decision to remove the Seed Tag was based on several performance metrics and internal evaluations. These metrics include active developer participation, frequency of technology updates, trading volume, and liquidity strength. Additionally, security levels and transparency in communication were also considered, along with compliance with regulatory expectations and consistency in token supply.
Additional metrics include the speed and effectiveness of project responses to Binance requests, the stability of project leadership, and the strength of community support. Overall, these standards have helped determine whether a token has matured enough to lose its Seed Tag designation.
Trading These Tokens Is Now Easier
This move has a direct real-world impact on users. The requirement for traders to pass a mandatory risk assessment before accessing these tokens has now been removed. Mitigating this barrier simplifies the trading process and may lead to an increase in the number of participants as well as higher daily trading volumes for the affected assets. Binance confirms that it will continue to regularly assess the risk profiles of all listed tokens.