Binance has updated its risk labels, adding Wanchain (WAN) to the Monitoring Tag list and removing several tokens from both the Monitoring and Seed Tags. The update, effective October 9, triggered a sharp market reaction as WAN’s price fell by 34%, dropping from around $0.10 to $0.06, a new all-time low.
The move is part of Binance’s ongoing efforts to protect users and maintain transparency. Tokens placed on the Monitoring Tag list are subject to closer review to ensure they meet the exchange’s standards for liquidity, performance, and development activity.
Wanchain, the native token of the Wanchain blockchain, enables cross-chain transactions and enhances interoperability between different blockchain networks. Its inclusion in the Monitoring list means Binance will continue evaluating its compliance and ecosystem development in future reviews.
However, the altcoin later regained some of its losses. At the time of writing, WAN was trading at $0.087, still down about 14.7% since the announcement.
Binance Explains Purpose of Monitoring and Seed Tags
Binance assigns the Monitoring Tag to cryptocurrencies that show higher volatility or face potential risk factors. These tokens remain tradable but are subject to ongoing reviews, which may lead to delisting if issues continue.
The Seed Tag, meanwhile, is used for newer or early-stage projects that carry additional risk due to limited history, products, or user adoption. Both tags act as clear warnings for traders to exercise caution.
Projects labeled under either tag must meet Binance’s standards for development progress, liquidity, security, and regulatory compliance. To promote user awareness, Binance also requires traders to complete a risk-education quiz every 90 days to confirm understanding of these terms and potential risks.
