Binance Places Tokenomics Risk Warning on These 10 Tokens

Binance has introduced a new warning system that places warnings on tokens that have significant changes in tokenomics.

Starting from October 1, 2024, Binance exchange will flag risk warnings and pop-up notifications for tokens that have significant changes in tokenomics and supply over the past 18 months.

The goal of this measure is to provide users with important information up front, helping them make smarter trading and investment decisions. The first 10 tokens to be included in the “red flag list” include:

— Travala (AVA)

— Chiliz (CHZ)

— Enjin Coin (ENJ)

— IOTA (IOTA)

— Lisk (LSK)

— Metal DAO (MTL)

— Orion (ORN)

— Self Chain (SLF)

— Solar (SXP)

— Vanar Chain (VANRY)

All 10 tokens have seen notable changes in their tokenomics and respective supply over the past 18 months.

For example, Binance two days ago announced support for Orion’s ORN token upgrade and rebranding to LUMIA. The upgrade, scheduled for October, will increase the project’s total supply from 92,631,255 ORN to 238,888,888 LUMIA. Chiliz also updated its tokenomics earlier this year, adjusting the annual inflation rate for its CHZ token.

Going forward, any cryptocurrency listed on Binance that undergoes a similar change will also be subject to this risk warning process.

It’s no secret that Binance has been working to strengthen its risk management and compliance measures in recent months, especially after facing a $4.3 billion fine from US regulators. Founder and former CEO Changpeng Zhao was recently released from prison after serving four months.

The latest move is also in line with an announcement the exchange made earlier this year, in which Binance added “Monitoring Tag” labels to high-risk coins like Monero (XMR) and Zcash (ZEC).