Binance, the world’s leading cryptocurrency exchange, has updated its labeling system on Wednesday for several altcoins, removing the Monitoring Tag from Zcash (ZEC) and the Seed Tag from Ethena (ENA), Pyth Network (PYTH), Bittensor (TAO), and Wormhole (W).
According to the announcement, this development follows a series of internal reviews to assess listed tokens’ performance, compliance, and overall maturity. The company further said that these assets no longer require additional risk warnings.
Why did Binance remove these tags?
Binance applies tags to certain cryptocurrencies to alert traders about potential risks. The Monitoring Tag is used for tokens that may exhibit high volatility or face regulatory uncertainties, while the Seed Tag is assigned to newer or developmental-stage projects.
Removing these tags suggests that the company now considers these assets more stable and compliant with its listing standards.
This development means Zcash (ZEC) is no longer under close scrutiny for sudden price swings or compliance concerns. Meanwhile, the four altcoins ENA, PYTH, TAO, and W have graduated from the Seed Tag, indicating they have matured beyond their early development phase.
However, the leading cryptocurrency platform clarified that removing these tags does not guarantee immunity from future delisting or market volatility. The exchange continuously reassesses listed assets, meaning labels can be reapplied if risks re-emerge.
Zcash (ZEC) and others make the cut
Due to market volatility and regulatory scrutiny, Zcash (ZEC), a privacy-focused cryptocurrency, had previously been under close observation. The new system implies that Binance now views ZEC as stable enough to warrant less oversight, at least for the time being.
Meanwhile, the Seed Tag, typically applied to newly launched or relatively untested projects, has been lifted from ENA, PYTH, TAO, and W. This shift indicates that these platforms have matured in development, user adoption, and ecosystem stability.
These projects have moved past their early developmental phases, demonstrating stronger fundamentals and greater reliability.
Because of the high prevalence of scams in the crypto space, Binance employs a thorough evaluation framework before adding or removing tags from listed assets. The review covers aspects such as the development activity behind a project, community engagement, team responsiveness, liquidity, trading volume, transparency, and even changes in the leadership structure.
This is part of the platform’s broader commitment to investor protection and market transparency. The exchange often re-evaluates all listed tokens and adjusts their labels based on findings, helping users make more informed decisions.
Binance is setting industry standards
The company’s continuous re-evaluation has helped shape industry standards around transparency and risk management. The exchange recently added BakeryToken (BAKE) tokens and IDEX (IDEX) to its Monitoring Tag list, signaling elevated risk levels.
On the other hand, removing such tags from more mature projects encourages innovation while reinforcing trust.
Though some altcoins, like HIFI, BMT, and CHESS, recently experienced steep price drops, Binance’s tagging system is a valuable tool for existing and new investors navigating the volatile world of cryptocurrencies.
