Wanchain (WAN) has come under intense selling pressure after Binance, the world’s largest cryptocurrency exchange, placed the token under its Monitoring Tag. The move immediately rattled investor confidence, causing WAN’s price to drop by more than 34%, falling from around $0.10 to $0.06 before making a partial recovery.
This update, effective October 9, 2025, has sparked renewed discussion about Binance’s tagging system, which identifies tokens that may pose higher risks due to volatility, liquidity issues, or other market factors.
According to Binance, the Monitoring Tag helps users recognize assets that may require closer observation, ensuring that traders remain cautious while engaging with tokens that face uncertain conditions.
Binance Tightens Oversight, Removes Tags from Other Projects
While Wanchain faced heightened scrutiny, Binance simultaneously removed Monitoring and Seed Tags from several other projects, signaling improving conditions for those tokens.
The exchange announced that GoPlus Security (GPS) and MovieBloc (MBL) were cleared from the Monitoring Tag, while Berachain (BERA), BIO Protocol (BIO), ZKsync (ZK), and LayerZero (ZRO) were removed from the Seed Tag list.
This mixed update demonstrates Binance’s ongoing process of regularly assessing listed tokens to balance user protection with market access. The exchange stated that these updates are part of “regular project reviews” aimed at maintaining transparency and accountability.
What the Monitoring Tag Means for Investors
The Monitoring Tag is essentially a warning label that Binance attaches to digital assets showing signs of increased volatility or other forms of market risk.
Tokens under this tag remain tradable, but they are subject to more frequent reviews. If a project fails to meet Binance’s compliance or performance standards during these assessments, it could eventually be delisted from the platform.
According to Binance, assets placed under this tag are evaluated based on multiple factors, including:
Project team activity and commitment
Liquidity and trading volume
User community strength and engagement
Security audits and code reliability
Regulatory compliance and transparency
To help users better understand the risks, Binance requires anyone trading tagged tokens to complete a short quiz every 90 days. This ensures that traders are aware of the heightened risk levels and agree to the associated terms before engaging in transactions.
Why the Market Reacted So Strongly
Wanchain’s 34% plunge underscores how sensitive the crypto market remains to exchange-based risk signals. When Binance applies the Monitoring Tag to a token, it is often perceived by traders as a red flag — an indication that the asset might face delisting or deeper compliance reviews.
This perception leads many investors to quickly exit their positions, driving the price downward.
Wanchain, a project focused on cross-chain interoperability, enables users to transfer assets across multiple blockchains, including Bitcoin, Ethereum, and XRP Ledger. Despite its strong technological foundation, market sentiment tends to react to exchange decisions more sharply than to underlying fundamentals.
Following the announcement, Wanchain’s token price briefly touched a new all-time low of $0.06, before recovering slightly to around $0.087, still down nearly 15% at the time of reporting.
Analysts note that this pattern is common in crypto markets — tokens often experience panic selling immediately after such updates, followed by gradual stabilization as traders reassess the real impact.
Binance’s Ongoing Effort to Protect Traders
Binance’s tagging system was introduced to improve investor safety by helping traders distinguish between stable, well-established tokens and those that might present higher risks.
The Seed Tag, for instance, is applied to new or unproven projects with limited adoption or liquidity. These tokens are not necessarily unsafe but are considered more experimental.
The Monitoring Tag, on the other hand, flags existing tokens that may have raised certain concerns — whether due to declining trading activity, team inactivity, or regulatory uncertainty.
According to Binance, these labels serve as visible reminders for traders to conduct thorough research before investing. The exchange emphasized that updates to these tags are not permanent and can change based on project performance.
In its latest statement, Binance said:
“The quizzes are set up to ensure users are aware of the risks before trading tokens with the Monitoring Tag or Seed Tag.”
Could Wanchain Recover?
While Wanchain’s short-term outlook remains uncertain, some market observers believe the sell-off could be temporary if the project addresses Binance’s concerns and demonstrates renewed network activity.
Historically, several tokens have recovered their standing after being placed under monitoring by exchanges, provided they showed signs of improvement in liquidity and community engagement.
If Wanchain manages to stabilize its price and maintain consistent development updates, there’s a possibility that Binance could remove the Monitoring Tag in future reviews — just as it recently did for GPS, MBL, and others.
However, investors are likely to remain cautious in the near term, given the broader market’s sensitivity to exchange decisions.
Final Thoughts
Binance’s latest tag update highlights how exchange policies can significantly influence market movements, even without direct trading restrictions.
For Wanchain, the Monitoring Tag represents both a warning and an opportunity — a chance to strengthen its fundamentals, rebuild trader confidence, and eventually regain favor with the exchange’s evaluators.
As the crypto market matures, transparency measures like these are likely to become standard practice across major exchanges. In the long run, they could help create a safer, more informed trading environment for millions of users worldwide.
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