Global digital asset exchange, Gate.io has launched an Observation Zone feature for emerging crypto coins to lower investors’ risk exposure and encourage rational investment decisions. It will set higher entry barriers and holdings limits for average users to help them cool down while keeping track of new coins.
The Observation Zone provides a “wait-and-observe” space for users for selected newly listed crypto projects, which will lower the overall portfolio risks for traders before making any serious investment decisions in these coins.
“We have always believed in creating a safe environment for crypto traders on our platform. The boom of DeFi projects driven especially by decentralized ecosystems across the global crypto space has brought new projects at a fast-pace into the world. Most of the new projects, in general, are still highly risky, with high volatility and probabilities of team exit, project failure, contract code bug, and more such flaws. In the DeFi summer last year, we saw the fragility of some promising projects. Sushiswap lost more than 70% after its creator, Chef Nomi, liquidated his funds, and Soft Yearn Finance rose to $160 and then immediately plummeted back to less than a dollar. This new feature will help our users reduce the risks in similar situations,” said Marie Tatibouet, CMO at Gate.io
Crypto tokens listed under the Observation Zone will have specific limits for users to place a buy order. Users will not be able to buy more tokens if they already hold $ 30,000 worth in that particular coin. However, advanced traders who are placing orders using an API or are VIP Level 6 or above will not be restricted by these limits.
Gate.io is a global, blockchain assets exchange platform that enables blockchain enthusiasts to trade and store assets in over 470 of the leading cryptocurrencies for over 3.5 million users from over 150 countries with offices in Malta, Singapore, Korea, China, and Canada.
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