How do you pass the Binance Seed Tag quiz that renews every 90 days?

The quiz and its every-90-days cycle both come from the announcement Binance published when it introduced the Seed Tag. The announcement says the quiz is there so users understand the risks involved in trading these tokens. Passing it gets you trading access; it says nothing about whether the coin is worth buying.

What does the Binance Seed Tag mean?

Binance introduced the Seed Tag on July 26, 2023. The reason the announcement gives is community feedback: users found it hard to tell Innovation Zone tokens apart from tokens in the main trading area.

Before that, Binance kept newer, riskier coins in a separate Innovation Zone. The Seed Tag replaced the Innovation Zone: every token then listed there was moved under the tag, and innovative project tokens listed afterwards carry it too. The announcement describes these tokens as potentially more volatile and riskier than other listed tokens.

Once the zone became a tag, these coins no longer had an area of their own. Binance Academy's Seed Tag glossary entry explains that they were folded into the regular trading interface, with the tag shown right next to the coin's name, so you see it whenever you check prices or open a coin instead of having to go looking in a separate zone.

The entry describes these projects in more detail: they're at an early stage of development, may not yet have a working product or a stable user base, and lack a long enough track record. Compared with established coins, their prices can swing harder, and their liquidity, trading volume and order book depth are lower.

The entry also makes a point of saying that the Seed Tag is neither a recommendation nor an endorsement, only a transparency measure that puts the project's early stage in plain view. The Monitoring Tag was introduced on the same day; the entry says it's used for tokens that may run into unusual conditions or face a delisting review, which is a different situation from the one the Seed Tag covers.

Spotting whether a coin carries the Seed Tag

According to the announcement, the tag appears on Binance's spot trading page, its margin trading page and the markets overview page. For every tagged token, Binance also shows a separate risk warning banner.

To check whether a coin you're watching is one of them, find it in the markets overview and look for the Seed Tag next to its name. Its spot trading page works the same way: look at the tag beside the coin's name.

A tag can also change after it's applied. Binance reviews projects regularly and then decides whether to add or remove tags, so the same coin may not have the same status when you look again a few months later. Every time you plan to trade, go by the tag shown on the page at that moment.

The quiz you take before trading Seed Tag coins

The announcement that introduced the Seed Tag says users have to pass the corresponding quiz on Binance Spot and/or Binance Margin every 90 days, and accept the terms of use, to get trading access to tagged tokens.

The quiz and the terms of use are two separate things, and the announcement requires both. If you've passed the quiz but haven't accepted the terms, then under the announcement's conditions you still don't get trading access.

The platforms named are Binance Spot and/or Binance Margin. Read literally, the corresponding quiz means one for each: if you only buy and sell on spot, you pass the spot quiz; if you plan to trade these coins on margin, you need to pass the margin one as well.

If you've done the quiz and still can't place an order, go through these in order:

1. whether you've confirmed that you accept the terms of use;
2. which platform you took the quiz on, and whether it's the same one you're ordering on now (spot or margin);
3. whether more than 90 days have passed since you last passed the quiz.

If all three check out and it still doesn't work, ask through the Binance Help Center or the 24/7 chat support. Send a screenshot of the message shown on the trading page with your question; it's clearer than describing it yourself.

Do you have to retake the quiz when the 90 days are up?

Going by the announcement's wording, your access to trade these coins is renewed every 90 days by passing the quiz again: once you've done it, you have to do it again a cycle later.

Ninety days is a little short of three months. Count it on a calendar: say you pass the quiz on October 1. Counting from the next day, October has 30 days left, November has 30, and another 30 days takes you to December 30, exactly 90 days. The announcement gives only the every-90-days cycle and doesn't say when the clock starts or whether you'll be reminded before it runs out, so treat that date as a rough reminder for yourself.

If you already hold Seed Tag coins, think about the selling side too: the announcement doesn't say what happens to existing holdings if the 90 days pass before you've passed again. The low-stress approach is to put the date you passed into your phone calendar, set a reminder a week or two before the 90 days are up, and retake the quiz early, rather than discovering you have to answer the questions again just when the market is moving fast and you're in a hurry to buy or sell.

How Binance decides to add or remove the Seed Tag

According to the announcement, Binance reviews projects regularly and decides, based on its latest findings, whether to add or remove the relevant tag. The factors it lists for these reviews are:

• the team's commitment to the project
• the level and quality of development as the project moves forward
• trading volume and liquidity
• the stability of the product, network or smart contracts
• community engagement
• how responsive the project is to Binance's periodic reviews
• unethical or fraudulent conduct
• contribution to building the wider blockchain ecosystem
• how secure the network is against attacks
• how openly the project communicates with the public

Everything on this list is about the project itself: whether the team is committed, how development is going, whether anyone is trading it, whether the network and contracts are stable, whether there's any fraud. None of it is price performance. A removed tag means the review reached a different conclusion, not that the coin is free of risk from then on.

What happens if you market-buy a thinly traded Seed Tag coin?

Of everything the Academy entry says about Seed Tag coins, the points most directly tied to placing orders are these: lower trading volume, a thinner order book and bigger price swings.

A thin order book means only small quantities are waiting at each price level. A market order doesn't name a price; it fills against the sell orders already on the book, starting at the lowest price and working up one level at a time. Say the best ask has 100 coins on it and you buy 300 in a single market order: the other 200 fill at the second and third asks or even higher, so your average fill price ends up above the price you saw when you placed the order. The thinner the book, the wider that gap gets.

For these coins, a limit order gives you more control: you enter the most you're willing to pay, the order waits if the price hasn't got there, and you'll never fill above the price you set. What each order type costs you is covered in our market vs limit order guide. If a limit order sits there without filling, our guide to unfilled limit orders explains how to check the price, edit the order and cancel it.

As for how much to put in, the entry notes that early-stage projects may have a higher failure rate. Size the money you put into these coins so you could bear losing all of it; for how much to start with on your first buy, see our piece on how much to put in first.

Binance Seed Tag FAQ