Binance introduces ‘risk warning’ tag, adds IOTA, Chiliz among 10 other coins

Binance will apply a new “risk alert” banner and pop-up notification to various tokens on its platform, the exchange announced on October 1.

Specifically, Binance has listed 10 tokens that will have a “risk warning” label, along with IOTA (IOTA), Chiliz (CHZ), and Enjin Coin (ENJ).

Other projects whose tokens will carry this label on Binance include Travala, Orion, Lisk, Metal DAO, Self Chain, Solar and Vanar Chain.

Why the ‘risk warning’ title?

While the world’s largest crypto exchange by trading volume already applies a monitoring label for high-volatility tokens, it said in an announcement that it took the step in response to feedback from the community.

Specifically, the warning, which will be in the form of a banner and pop-up notification on each coin, aims to highlight to users that the token in question has recently undergone significant changes in terms of tokenomics.

“To gain trading access to tokens marked with significant tokenomic changes, users will first need to accept the pop-up notification,” Binance wrote.

All 10 tokens above have seen notable changes in their respective tokenomics and token supply over the last 18 months. For example, Binance recently announced support for the upgrade of Orion and the rebranding of the token to LUMIA.

The upgrade, set for October, will see the project’s total supply increase from 92,631,255 ORN to 238,888,888 LUMIA.

Chiliz also updated its tokenomics earlier this year, adjusting the annual inflation rate of the CHZ token.

Binance will apply a similar warning to any projects that significantly alter their tokenomics to increase supply in the future.

Binance’s increased compliance measures

Over the past few months, Binance has sought to increase its risk management and compliance measures.

This latest move is in line with what the exchange announced earlier in the year regarding the tracking label it applied to various cryptocurrencies, including Monero (XMR) and Zcash (ZEC).

These measures are part of a shift in approach that emerged after the exchange reached a staggering $4.3 billion settlement with US authorities in 2023 due to regulatory pressures. Binance is also facing a lawsuit from the US Securities and Exchange Commission.

Meanwhile, founder and former CEO Changpeng Zhao was recently released from prison after a four-month prison sentence.