After announcing the monitoring label on Thursday, Binance — the largest exchange by volume — caused the four altcoins to plummet.
Actions by major exchanges such as listing, delisting, or placing a token under monitoring often lead to significant price volatility.
Binance labels 4 altcoins for monitoring
In a statement on Thursday, Binance announced that it would expand its monitoring label to include 4 tokens in its portfolio: Beefy (BIFI), StaFi (FIS), Komodo (KMD), and Measurable Data Token (MDT).
"Based on recent evaluations, Binance will expand the monitoring label to include additional tokens starting from June 5, 2025," the announcement stated.
Shortly after, the prices of these tokens plummeted sharply, with some recording double-digit declines.
Price performance of BIFI, FIS, KMD, MDT | Source: TradingView
The significant price drop is not surprising, considering the implications of the monitoring label for altcoins on major exchanges. Specifically, the monitoring label means that the token is at risk of being delisted, depending on future evaluations.
The monitoring label indicates that the token has a higher level of volatility and risk compared to other tokens listed on the platform.
"Please note that tokens labeled for monitoring are at risk of no longer meeting our listing criteria and may be delisted from the platform," Binance warns.
This label is intended to warn traders and investors about potential issues that may affect the stability or compliance with Binance's listing criteria.
Notably, the monitoring label is somewhat different from the seed tag — which is also applied to tokens with higher volatility and risk, but is more experimental or newly launched.
What Binance users need to know
Based on Binance's evaluation criteria, users wishing to trade 4 altcoins with the monitoring label must complete a periodic test every 90 days on the Binance Spot and/or Binance Margin platform and accept the terms of use.
Tests are aimed at ensuring users are aware of the risks before trading tokens with a monitoring label.
"Users can find the monitoring label on the respective trading pages of Binance Spot and Binance Margin, as well as on the Market Overview page. A risk warning banner will also be displayed for all tokens with a monitoring label," Binance stated.
As the future of the tokens BIFI, FIS, KMD, and MDT hangs in the balance, Binance will evaluate various factors such as the team's commitment to the project, actual development activity and quality, trading volume, liquidity, stability, and security of the network against attacks.
Additionally, Binance will also consider the project's responsiveness to periodic assessment requests from the exchange, along with other factors such as unusual or unjustified increases in token supply, and changes in the token's economic model. Notably, community sentiment and reactions will be closely monitored by Binance.
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