Leading cryptocurrency exchange Binance has stirred the markets by announcing a new watch tag covering five cryptocurrencies: Bluzelle (BLZ), CLV (CLV), SelfKey (KEY), Prosper (PROS), and VITE (VITE). These tags are typically used for assets with high volatility and potential delisting risk.
Binance regularly applies such labels to high-risk assets, reviewing the performance of these assets every 90 days and informing traders about possible risks.
This highlights the potential impact these assets can have on the market, especially during the ongoing broad sell-off. If these tokens fail to meet listing requirements, they could face delisting.
Binance’s move could have serious consequences, especially for tokens like BLZ that offer decentralized data storage solutions. While BLZ faces the possibility of being delisted, four other cryptocurrencies are also under similar pressure.
At the same time, Binance announced that it has removed the Seed Tags from two projects, Pendle (PENDLE) and Sei (SEI). This indicates that both projects have become more stable and are no longer in the high-risk category of the exchange. Seed Tags usually reflect the volatility of early-stage projects, but exiting this stage can increase investor confidence.
Such announcements often cause significant fluctuations in the cryptocurrency markets. For example, the price of BLZ, which was put on the watchlist, increased by more than 4%, while its trading volume increased by 170% to $15.73 million. On the other hand, the prices of four other cryptocurrencies, such as CLV, KEY, PROS, and VITE, fell by about 20%, indicating that Binance has a major impact on investor sentiment and potential risks associated with the assets.