As a seasoned crypto investor with years of experience navigating the volatile and dynamic world of digital assets, I find Binance’s recent decision to implement a “risk warning” banner for certain tokens on its platform both prudent and reassuring.
Starting October 1st, Binance plans to display a “cautionary notice” banner and alert notifications for various tokens across its platform, as they have officially announced.
As an analyst, I’d like to highlight a significant development: Ten digital assets, including IOTA, CHZ, and ENJ, will now carry a “risk warning” label on Binance. This move underscores the platform’s commitment to maintaining transparency and ensuring users are well-informed about potential risks associated with these tokens.
Additionally, you’ll find that other projects such as Travala, Orion, Lisk, Metal DAO, Self Chain, Solar, and Vanar Chain will also display this tag on Binance, similar to yours.
Why the ‘risk warning’ banner?
Although the world’s top cryptocurrency exchange by trading volume has already implemented a tracking label for highly volatile tokens, they recently announced that this move is in response to suggestions from their community members.
The notice, appearing as a band across the coins and a pop-up alert, is intended to draw attention to users about recent substantial modifications in the economics (tokenomics) of the particular token they are dealing with.
Binance stated that before being able to trade tokens which have undergone notable changes in their tokenomic structure, users must first agree to a pop-up message.
Over the last 18 months, each of the mentioned tokens has experienced significant alterations in their token economy and supply. To illustrate, Binance has revealed its backing for Orion’s upgrade and rebranding of its token to LUMIA.
In October, the total number of ORN tokens in our project will be boosted from its current 92,631,255 to a new supply of 238,888,888 Lumia tokens.
Earlier this year, Chiliz revised its token economics, altering the annual inflation rate for the CHZ token.
Binance plans to issue a similar advisory for any projects modifying their token economics significantly, particularly if such changes lead to an increased token supply in the future.
Binance’s increased compliance measures
For a few months now, Binance has been working on enhancing its safety protocols and adhering to regulatory standards.
As a researcher, I’ve just taken a new measure that aligns with the earlier announcement made by the exchange about their monitoring tag. This tag was applied to various cryptocurrencies such as Monero (XMR) and Zcash (ZEC), including mine.
These actions are being implemented as a response to the exchange adopting a new strategy following a massive $4.3 billion fine imposed by U.S. regulators in 2023, with Binance additionally dealing with a lawsuit from the U.S. Securities and Exchange Commission.
Currently, after serving a four-month sentence, the founder and ex-CEO, Changpeng Zhao, has been freed from prison.
Read More
Sorry. No data so far.
2024-10-01 18:53