Binance Removes Seed Tags from BONK, PEPE, and PENGU; NEWT and SAHARA Added to VIP Loan Program

On July 21 of this year, Binance, the world’s largest cryptocurrency exchange, made a major announcement. They will be listing the Seed Tag on Bonk (BONK), Pepe (PEPE) and Pudgy Penguins (PENGU). The brief ruling also affects how these meme coins will be classified under the platform. Last week, Binance expanded its VIP Loan program. It has since added Newton Protocol (NEWT) and Sahara AI (SAHARA) as additional loanable assets. Despite these announcements, the market impact has been mixed, with the majority of the impacted cryptocurrencies trading lower.

Seed Tag Removal

Binance has now delisted the Seed Tag from BONK, PEPE and PENGU. This regulatory about-turn signals their new-found belief that these cryptos are no longer a security. The Seed Tag is generally used on newer, more volatile, and riskier projects. Its removal suggests that Binance views these meme coins as having matured to a certain extent, reducing the perceived risks associated with them.

However, despite the upbeat connotation suggested by the removal of the Seed Tag, the market's reaction was not all positive across the board. Although some may have anticipated a price rally, the majority of the cryptocurrencies that were impacted went south after the announcement. This indicates that the overall market sentiment towards these assets is driven by other factors, regardless of how they are grouped on Binance.

VIP Loan Program Expansion

Binance has listed new assets, Newton Protocol(NEWT) and Sahara AI(SAHARA) on its VIP Loan platform. Taken together with this announcement is the recent removal of Seed Tag. This expansion has unlocked access to liquidity using these assets as collateral through a wider range of services for VIP users. In its quest to continue innovating and providing the best possible service, Binance has included NEWT and SAHARA to the VIP Loan program. This modification speaks directly to their ever-increasing demands of their most high-value clients.

Market Performance Post-Announcement

After the announcements, a few major movers on the crypto market jumped on the news. Of the companies listed, FIO charted the largest decline of nearly 8% after the announcement. Ethereum Classic (ETC), The Graph (GRT), and Oasis (ROSE) saw daily losses. Yet this trend demonstrates a deeper market development that powers beyond the Binance news.

ETC, GRT, and ROSE’s performance highlights the intricate web of factors that can drive cryptocurrency prices. Although platform-specific news can certainly cause a stir, overall market trends and investor sentiment usually make the biggest waves. The crypto selloff that continued dragging these cryptocurrencies deeper into the red even after the Binance announcements indicates the pressure was much more than hype.