The last thing I would have expected to wake up to is monitoring tags on my favorite asset – Binance added one on GoPlus Security (GPS). As you would expect, tracks of GPS tokens will be impacted after this new alteration, and thus traders will need to alter their entire strategy.
In an announcement by GPS, it was stated that from March 7, 2025 onward no additional monitoring tags will be placed due to major market activity GPS tokens seem to elicit. In this article, we will analyze the reason and what potential effects can stem from this new change.
Why Did Binance Place Monitoring Tag on GPS?
Considering Binance’s official statement that GPS is under siege due to unexpected movements in the market following its listing, its primary reasons include.
- Huge Dump: One of the market makers executed a trade of close to 70 million GPS tokens between March 4th, and 13:00 UTC and March 5, 09:55 UTC.
- Lack of Buy Orders: At this time the Market Maker had not executed any buy orders resulting in an unbalanced market.
- Ceaseless selling: The Market Maker continued selling as soon as GPS spot trading was opened which resulted in a decline in the price of trading in the market.
- Absurd Profits: With around 5,000,000 USDT at your disposal, the Market Maker emerged as one of the leading profiting traders.
- Suspended Binance Account: The Market Maker’s account has also been suspended for an undetermined timeframe while Binance conducts further investigation.
What Is A Monitoring Tag? 🔍
Tokens with the Monitoring Tag are more prone to volatility and risks. Binance routinely audits these tokens and any of them that do not meet the acceptance criteria are at risk of getting delisted.
In order to participate on GPS and other tagged tokens, users need to:
- ✅ A pass a trading examination every ninety (90) days for Spot and/or Margin trading on Binance.
- ✅ Accept the trading risks prior to execution.
Should You Be Worried About GPS? 🤔
Consider the following if you buy or sell GPS:
- 🔹 Elevated concern – Suffering from increased volatility means movements in prices can be extreme.
- 🔹 Prospective delisting – GPS may be removed from the platform because it may not pass Binance’s regular assessment.
- 🔹 Trust Deficit of the Market – The company’s action indicates there might be some inside issue regarding the market and therefore takes it very seriously.
Binance’s Review Criteria 🔬
Binance considers multiple criteria when applying or removing the Monitoring Tag:
- 📌 Project Team’s Commitment
- 📌 Development Activity, Updates, and other Engaged Activities
- 📌 Trading Volume and Liquidity
- 📌 Network(s) Stability and Security
- 📌 Due Transparency and Responsiveness to Binance’s Diligence
- 📌 Ethical Business Practices
If GPS successfully demonstrates improvement in these areas, it can expect the Tag removed in subsequent evaluations.
GoPlus Security (GPS) Upcoming Plans 🚀
While this postponement might not spell doom for GPS, it does raise a few eyebrows. Traders ought to:
- ✅ Remain Proactive – Subscribe to official Binance social media handles for announcements as well as GPS project news.
- ✅ Review Positions – For those holding GPS, have a second look at the risk/return ratio considering its latest status.
- ✅ Monitor Market Movements – GPS can experience heightened price fluctuations because any token with the monitoring tag tends to be more volatile.
Final Thoughts 💭
The Monitoring Tag on GPS serves as a warning for traders and investors. It’s crucial to stay informed and assess your risk tolerance before continuing to trade or hold GPS. Binance’s actions indicate they are taking project security and market fairness seriously, but only time will tell if GPS can recover from this setback.
Do you think Binance’s decision will impact the future of GoPlus Security? Let us know in the comments below! 🔥
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions.
Source: https://www.binance.com/en/support/announcement/detail/79167fa2f976432eaab191563887ffd1