Binance Applies Monitoring Tag to Four Tokens, Prompting Immediate Price Drops

On September 4, Binance placed a Monitoring Tag on four assets – AVA (Avalanche), Gains Network (GNS), Scroll (SCR) and Towns Protocol (TOWNS). The tag signals that the tokens are under heightened scrutiny and could face delisting if they fail to meet the exchange’s criteria.

What the Monitoring Tag Indicates

Binance uses the Monitoring Tag to flag assets that are considered more volatile or risky than other listings. Tokens with the tag undergo repeated reviews that assess factors such as team commitment, development activity, trading volume, liquidity, network stability and tokenomics changes. If a token no longer satisfies Binance’s standards, it may be removed from the platform.

Immediate Market Reaction

• Towns Protocol fell 9.02% within minutes of the announcement.
• Scroll traded around $0.0214, down 7.5% with roughly $1.6 million in Binance volume.
• AVA dropped 4.88%.
• Gains Network recovered slightly, ending the period down 0.38%.

Recent Delisting History

Binance’s recent delistings have often followed a prior Monitoring Tag. Last month the exchange removed Across Protocol (ACX), Hashflow (HFT), PIVX, Vulcan Forged (PYR), Vanar (VANRY) and Viction (VIC) after they had been tagged. The pattern continued in early September when ICON (ICX), Secret (SCRT) and Storj (STORJ) were taken off spot trading after receiving the tag.

Impact on Services

Binance clarified that other services linked to the four tokens remain unaffected. The Monitoring Tag itself does not guarantee a delisting, but the exchange’s recent actions suggest a heightened risk for tagged assets.