Binance, one of the world’s leading cryptocurrency exchanges, unveiled two major initiatives on July 26, 2023, to improve user experience and foster transparency. The first initiative involved the launch of “Seed Tags” and “Monitoring Tags” for tokens known for their high volatility and risks. The second was the addition of a new stablecoin, First Digital USD (FDUSD), to its platform, accompanied by a zero trading fee promotion.
The Seed Tag, which took over the role of the Innovation Zone, was assigned to tokens associated with innovative projects that may exhibit higher volatility and risks. The Monitoring Tag was designated for a specific set of tokens known for their particularly high volatility and risks, including but not limited to Akropolis (AKRO), AirDAO (AMB), Bitshares (BTS), Cream Finance (CREAM), and FTX Token (FTT).
To ensure that users understand the risks associated with trading these tagged tokens, Binance introduced a few requirements. As per the rule, users must pass quizzes every 90 days on their Spot and Margin platforms and agree to the Terms of Use. Further, Binance also pledged to carry out regular project reviews to determine whether the tags should be adjusted based on their most recent findings.
On the same day, Binance added the new stablecoin First Digital USD (FDUSD) to its platform and initiated trading for new spot trading pairs. To mark the launch, Binance rolled out a zero-maker fee promotion for FDUSD trading pairs. This promotion also applied to the FDUSD/BUSD and FDUSD/USDT spot and margin trading pairs, offering users zero maker and taker fees.
FDUSD, a 1:1 USD-backed stablecoin, is issued by FD121 Limited under the brand name of First Digital Labs. It is designed to mitigate the impact of volatility in the cryptocurrency market, streamline financial transactions, and provide faster, more secure transactions. FDUSD is backed by high-quality reserves, including cash and cash equivalents, and its reserve account undergoes audits by independent third parties such as Prescient Assurance.
These steps highlight Binance’s commitment to building a transparent and sustainable crypto ecosystem. However, Binance also clarified that it retains the right to disqualify trades suspected of being wash trades or associated with illegally bulk registered accounts, as well as trades that exhibit signs of self-dealing or market manipulation. Furthermore, Binance noted that it reserves the right to modify or cancel the promotions or promotion rules at its sole discretion.
