Phemex Flags 82 Cryptos for Liquidity and Compliance Concerns

Phemex, a cryptocurrency exchange, has placed 82 unique USDT spot pairs under Special Treatment due to liquidity and project compliance concerns. The restriction took effect on August 31 at 10:00 UTC, requiring users to pass a mandatory Risk Cognizance Test before trading these assets.

The affected tokens include ETC, XTZ, SNX, YFI, NEXO, AXS, USDe and TUSD among others. Phemex cited three reason categories for the Special Treatment: persistently low volume and insufficient liquidity, a project team's failure to provide valid operational updates, or missed critical whitepaper milestones without explanation.

The exchange's published rules classify a project as low-liquidity if it meets three of four tests, including bid-ask spread above 0.5%, average daily pair volume below 30,000 USDT for three consecutive months, no trades for 120 consecutive minutes outside a technical issue, or market capitalization below 3 million USDT for three consecutive months.

Phemex will continue reviewing the projects and may remove the tag if conditions improve or delist a token later if they deteriorate. Holders are advised to monitor Phemex announcements and evaluate the risks while the observation period continues.