Binance, one of the largest cryptocurrency exchanges, announced the removal of Seed Tag from five tokens: BONK, PEPE, EIGEN, PENGU, and ETHFI. This decision, based on a thorough project assessment, aims to enhance market trust and remove certain trading restrictions.
Removal of Seed Tag and Reasons
The Seed Tag for the mentioned tokens was removed on July 21, 2025. Binance believes this indicates the stability and maturity of these projects following in-depth analysis. "Following a thorough assessment of project diligence, developer activity, trading liquidity, security posture, and regulatory compliance, Binance is removing the Seed Tag for BONK, EIGEN, ETHFI, PENGU, and PEPE. All services related to these tokens will continue normally, without interruption." - stated Changpeng Zhao, CEO of Binance.
Market Impact and Investors
The removal of the Seed Tag improves market sentiment, signaling higher stability for the tokens and the potential for increased trading activity and investor interest. This change primarily affects meme tokens like BONK and PEPE, which may enhance their legitimacy and expand investor participation. Validated projects such as EIGEN and ETHFI also receive support, while PENGU gains market confidence.
Outlook and Cautions
Experts expect improvements in liquidity and market capitalization as Seed Tags are lifted, though outcomes still depend on broader market factors. Historical precedents show that similar removals usually result in heightened interest in such tokens. However, investors are advised to remain cautious, as market risks persist.
The removal of Binance's Seed Tag for these tokens is a significant development that could impact investors and market activity. However, the importance of ongoing analysis of market conditions and the status of the projects themselves cannot be underestimated.
