Binance Flags Four Tokens with Monitoring Tag, Raising Delisting Concerns

Binance placed AVA, Gains Network (GNS), Scroll (SCR), and Towns Protocol (TOWNS) under its Monitoring Tag on September 4. The designation subjects all four assets to heightened scrutiny.

Market participants responded swiftly. Each token declined in value after the announcement.

Understanding the Binance Monitoring Tag

The tag is applied by Binance to highlight assets that carry more volatility and risk compared to other listed tokens. Tokens bearing this label undergo recurring assessments and may ultimately be removed from the exchange.

“Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform,” the team said.

Binance evaluates factors such as team dedication, development progress, trading volume, liquidity, network stability, and changes in tokenomics during each review.

The exchange’s recent history lends significance to the label. Binance removed Across Protocol (ACX), Hashflow (HFT), PIVX, Vulcan Forged PYR (PYR), Vanar (VANRY), and Viction (VIC) last month—each had previously carried the Monitoring Tag.

A similar situation occurred a few weeks later. ICON (ICX), Secret (SCRT), and Storj (STORJ) were taken off spot trading on September 3. All three had been tagged beforehand, with ICX receiving the designation as July 11.

Scroll and Towns Protocol Experience Steepest Drops

The market quickly priced in that track record. TOWNS fell 9.02% within minutes of the announcement. SCR traded around $0.0214 after the news, down 7.5%, with roughly $1.6 million in trading volume on Binance.

AVA declined 4.88%. GNS partially recovered from its initial drop and was down 0.38% at the time of writing. According to Binance, other services involving the four tokens remain unchanged.

The tag does not guarantee a delisting by Binance. However, recent removal rounds have drawn from the tagged list, increasing the probability.