Why Binance Seed Tag Token Sale Pricing Is Falling

Throughout 2025, one of the most visible trends in the crypto market has been the rapid decline in performance of newly listed Binance tokens. This is especially true for those labeled with the Seed Tag, which marks early-stage, high-risk assets. 

Once viewed as a launchpad for the next generation of breakout projects, the Seed Tag segment has instead become one of the worst-performing categories on the exchange, leading people to question the quality of the tokens, investor trust, and how Binance picks its listings.

Using the combination of recent data, community research, and Binance’s own delisting waves, it seems that the Seed Tag tokens are collapsing because new projects are of lower quality, the way they get listed is broken, and what investors want has completely changed. 

That being said, we’ll go deeper into why this is happening by looking at the real numbers, examining specific failed tokens, and discussing what it means for traders moving forward.

Related: Binance Token Tags Updated: New Risk Labels for Traders

CZ himself acknowledges the problem

Before we even get to the newer data and the failing tokens, back in February, Binance’s founder, Changpeng “CZ” Zhao, publicly acknowledged weaknesses in the listing process. He thought of it as somewhat broken, pointing out that the listing comes 4 hours after the announcement, during which the token prices go high on DEXes, and then people sell on CEX.

CZ’s comment shows the current structural flaws:

• As soon as Binance announces a new token, traders on other platforms (DEXes) start buying it, pushing the price way up before it even hits Binance.
• Seeing the Binance listing, traders on the main exchange often buy in, expecting a price surge, but actually end up buying at the inflated peak.
• The traders who bought early on other platforms immediately sell on Binance for a quick profit, leaving regular investors who bought at a high price stuck as the value drops.

This pattern has been around for a while, but this year, weaker market conditions made it much worse, turning nearly every new listing into a predictable setup for a quick price crash.

Related: CZ Calls for Coinbase Parity on BNB Chain Listings as Views Split

April data confirms the trend

Fast forward a couple of months, an analyst in April put numbers to what many traders have been saying: new tokens listed on Binance are doing very poorly. 

The data showed that only 3 out of 27 tokens made money: $FORM, $RED, and $LAYER. This means that if you invested $100 into each listing, your $2,700 would now be worth about $1,500. Data also showed the average loss for all tokens was 44%, with most tokens dropping right after being listed and continuing to go down.

In the end, the analyst concluded that if you bought a token on Binance, you had zero chances of making money and were just providing exit liquidity for others to cash out.

This pattern of heavy losses continued as the months went on, which is a key reason why investors are now much more wary of risky Seed Tag tokens. Basically, when a category keeps losing money, trust disappears fast.

A warning label that became a red flag

Originally, the Seed Tag was introduced as a transparent way to warn users that a token is early-stage, high volatility, and may not have a proven track record. However, in 2025, it has come to signal something worse – a high probability of failure. 

A review of the top Seed Tag failures in 2025 shows that many tokens were delisted or collapsed by 80-90% shortly after launch.

There are likely several factors why these specific tokens delisted or had a huge price drop. For starters, most had very little daily buying and selling. Some had less than $1 million in volume, which is too low for a major exchange.

Binance regularly cites weak GitHub activity, poor communication from teams, and roadmaps that saw no updates as major downsides. Also, some projects raised red flags for having unreliable networks, poor security, or being at risk of hacks.

Broken tokenomics is another factor, considering that projects like BIO and COOKIE launched with token unlock schedules or supply structures that guaranteed sell pressure.

Then, there’s the general market shift. In 2025, investors became much pickier, prioritizing large caps and established L2 ecosystems, instead of early-stage experiments.

While graduations do happen (such as BONK, EIGEN, PENGU, PEPE, TON, and a few others), they are extremely rare compared to the number of failures, especially considering Binance tightened quality standards and many projects simply aren’t strong enough to survive these reviews.

Related: Binance Removes ‘Seed Tag’ Risk Warning From BONK, PEPE, and EigenLayer

Why Binance token sale prices are going down

All these issues lead back to the central issue of new Seed Tag tokens launching lower and performing so badly. The reasons are many, but here are the main ones:

• Weak projects – many new tokens have no real users, unfinished products, or a clear plan, so demand diminishes and no one wants to buy them.
• Too many tokens unlocking at once – large amounts of tokens get released for sale soon after listing, flooding the market and pushing the price down.
• DEX pre-pumps distort true market value – speculative buying on other platforms before the Binance launch creates a price bubble that pops as soon as trading starts.
• Poor liquidity and low volume – with few buyers and sellers, the price becomes unstable and easily falls.
• Investor fatigue – after suffering repeated losses, retail traders now avoid early-stage listings, reducing natural buying pressure.
• CEX competition – with dozens of new listings across multiple exchanges, capital is spread thin, which reduces demand for any single token.
• General market preference for established coins – in 2025, most capital is going into big, established coins like Bitcoin and Ethereum, leaving new tokens with little to no attention.
• Regulatory worries – tighter rules worldwide have made investors more cautious about risky, unproven tokens.

Simply put, Seed Tag tokens are falling because the system for launching them is broken, traders have lost faith, and the projects themselves often aren’t good enough to succeed.

It’s worth noting that on top of the Seed Tag, Binance also has a Monitoring Tag system, which flags tokens with elevated volatility, low liquidity, or compliance risks. Additionally, since July 2023, the exchange requires users to complete a risk awareness quiz every 90 days before they can trade tagged assets. The step is meant to make users more careful and help Binance meet stricter regulations.

These tags often have an immediate impact on price. Tokens like BLZ and CLV fell right after getting the warning label, showing how much traders trust Binance’s risk signals. On the other hand, when the Seed Tag was removed from tokens like BONK and PEPE in mid-2025, they saw more trading and interest.

Related: Binance Announces Monthly Monitoring Tag Reviews, Enhancing Transparency for Risky Tokens

What this means going into 2026

As things stand now, the Seed Tag is no longer just a caution label, but a genuine red flag. Crypto enthusiasts see these tokens as extremely volatile, prone to failure, and as quick trades with no long-term investments.

Only projects with sustained liquidity, active development, transparent communication, and real adoption have a fighting chance to survive Binance’s increasingly intense review cycles.

Looking ahead, traders can expect Seed Tag tokens to stay highly unpredictable, with more being removed from the exchange as Binance’s rules get even stricter.

Related: Binance Cuts Illegal Crypto Activity to Historic Lows, Data Shows