What are the Binance Seed Tags and Binance Monitoring Tags that make the community so exciting these past few days? Why does it have a big impact on the market of "forgotten" projects that bring in large cash flows thanks to significant rising waves?
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What are Binance Seed Tags?
The Seed Tag on Binance is applicable to all of the following Token :
- The Token belongs to the Innovation Zone group, which is where the floor is used for suitable people to trade new Token , while protecting "unsuitable" people to bear the risks from the volatility of new Token .
- Innovative Token have the potential to be listed in the future.
What are Binance Monitoring Tags?
Additionally, Binance will introduce Monitoring Tags, applied to Token with the following characteristics:
- Token are highly volatile and liquidation
- The project has low Capital
- The project has the ability to delist
- Projects with suspicious activities and operations that pose a risk to users
Below are the Token included in Monitoring Tags:
Reasons why projects are delisted
The factors for Binance to XEM whether to Delisting an asset will be:
- Team commitment to the project
- Level and quality of development activities
- Volume and liquidation
- Stability and safety of the network against attacks
- Network/smart contract stability
- Level of communication with the community
- Ability to respond to Binance's periodic due diligence requests
- Evidence of fraudulent/unethical or irresponsible behavior
- Contribute to building a healthy and sustainable Crypto ecosystem
Some recent cases of Delisting projects were previously subject to Monitoring Tags from Binance: Serum (SRM), Sonm (SNM) or DFIMoney (YFII).
Read more: What mistakes did the projects delisted from Binance make?
Cases where Monitoring Tags products have their prices pushed up
Recently, in the context of a lack of market liquidation and little new cash flow, low-cap and monitoring coins are receiving a lot of attention to pump their prices strongly. These are all Token that have a few things in common: few holders, little liquidation, low Capital and a circulating supply of over 70%.
$LOOM (Loom Network)
Loom Network , an extended Layer 2 solution of Ethereum , has seen a huge jump of over 1100% in just 1 month.
The reason lies in the fact that Upbit exchange continuously has many moves to collect and withdraw this Token from the wallet to tighten the supply, thereby pushing up the price smoothly. Meanwhile, the market in October still appears to be relatively liquidation , so it is not unusual for the fomo community to initiate Narrative Upbit .
Initially, this Token only had a Market Cap of around $50M, but after growing, it sometimes reached $414M in total Capital . Currently Market Cap $LOOM has dropped to just over $145M.
$ARK (Ark)
$ARK also pumped 319% strongly during this October period, this is the Binance Monitoring Tags item pushed by Binance itself to attract waves of low-cap coins.
Currently the Token is trading at $1.58.
$WRX (WazirX)
WRX is a low-cap Token of Binance. This Token was also pushed up by Binance by 86% in just 3 days from October 13.
However, this coin could only hold its wave peak for a short time before falling 38% the next day.
Identify
The common point of low-cap coins that are pumped strongly is that the community has largely sold out and the project's chart tends to "float", which means whales have the opportunity to collect the drops without revealed many traces.
Although the project is at risk of being delisted because the project does not have many developments, it does not mean that their Token cannot be profitable and attract cash flow. The evidence is clearly seen in the names mentioned above.
Allinstation has also launched a few projects that are likely to be delisted in the near future.
Read more: Projects are at risk of being delisted from Binance in the near future
During Q3 of the market, the market was quite lacking in liquidation and cash flow, so projects that seemed to be "dead" were pulled out to create smaller Narratives to attract investors to join fomo.
For young investors, excessive fomo in projects under this label poses more risks than opportunities.
Allinstation can suggest a few Binance Monitoring Tags projects that currently have not too large impulse waves: $AMB, $VGX,...
It is predicted that in Q4, low-cap waves will likely still be pushed but will no longer occur frequently because the Halving time is near. In addition, large Airdrop and news related to Bitcoin ETF Spot also cause investors to pay more attention to projects with more potential to create trends. Potential Narratives include SocialFi , LSD , Account Abstraction or RWA .
summary
Above is an article about Binance's Seed Tags and Monitoring Tags along with information surrounding these labels.
