The popular cryptocurrency exchange Binance has raised concern about 10 tokens that are currently trading on its exchange. This was contained in an announcement made, stating that
“Moving forward, any listed tokens that undergo significant changes to their tokenomics or experience a substantial increase in token supply will also be subject to the risk warning banner and pop-up notification,” Binance warns.
The tokens listed below will now be accompanied by a pop-up warning about the risks of trading them for users.
This is following the risk that has been observed by the Binance team. Citing that over the past year and a half, the teams behind these tokens have significantly deviated from the originally planned tokenomics of their projects, particularly by substantially increasing the token supply.
The Affected Tokens Are:
▫️Travala (AV)
▫️Chiliz (CHZ)
▫️Enjin Coin (ENJ)
▫️IOTA (IOTA)
▫️Lisk (LSK)
▫️Metal DAO (MTL)
▫️Orion (ORN)
▫️Self Chain (SLF)
▫️Solar (SXP)
▫️Vanar Chain (VANRY)
What is Tokenomics
Read Also: Token2049: Binance CEO affirms commitment in ensuring the release of Gambaryan.
For newbies in the cryptocurrency space you’d wonder what tokenomics is.
Tokenomics is coined from two words, “token” and “economics”. Tokenomics refers to the blueprint of a project which states the build-up of the project and its roadmap, what it claims to achieve and the gap it is filling in the cryptocurrency market.
It is an essential factor to look out for before investing in a project, as it plays a major role in dictating the success of the project. A token that is built on a good ecosystem has the potential to outperform one that wasn’t.
Tokenomics as a concept captures every component that makes up the project, its supply, distribution and utility. All these are stated in the protocol stage by its developers; documented in what is referred to as White-paper.
Why You Should DYOR
The acronym DYOR stands for “do your own research”. The cryptocurrency market is a highly volatile market, and just like every other investment venture, cryptocurrency investment comes with its risk, that is why investors are always advised to make research on the token they plan to invest in before taking action. That is where tokenomics comes in; giving investors relevant information about the project.
Concluding Thoughts
Binance as a verified, efficient CEX has done its part on making public their concerns as regards the aforementioned tokens. Now it’s left for those who have invested in these to do their due diligence in ensuring safety of their funds.
In a case whereby users who invested in the token are convinced and confident about the future of the token, they can continue to HODL but if otherwise they’re advised to swap to fiat or desist from trading these tokens.
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