Binance Flags 4 Tokens With Monitoring Tags

Binance officially applied its Monitoring Tag to AVA, Gains Network, Scroll, and Towns Protocol on September 4. This label indicates that the four assets are now subject to more frequent oversight. The exchange uses this designation to warn users about tokens that show higher volatility and risk compared to other listed assets.

Market participants responded to the news with caution. TOWNS experienced a sharp decline of over 9 percent shortly after the announcement. Scroll saw a drop of 7.5 percent, while AVA fell nearly 5 percent. Gains Network managed a slight recovery, though it remained in the red as traders digested the potential consequences of the new label.

While the tag does not guarantee that a coin will be removed, history suggests caution is wise. Binance frequently uses this monitoring process as a precursor to delisting. The exchange considers factors like team commitment, network stability, and development activity when evaluating whether a project still meets its standards.

Recent history shows that projects labeled with the Monitoring Tag are significantly more likely to be removed from the platform. With several tokens delisted throughout August and early September following similar warnings, traders are keeping a close watch on these four assets to see if they can improve their standing or if they will be the next to exit the exchange.