The Seed Tag, which replaced the Binance Innovation Zone, is a tag used to classify cryptocurrencies that are usually in their initial stages of development and may not yet have a working product or established user base. As such, cryptocurrencies with a Seed Tag might exhibit higher volatility and investment risks when compared to other listed tokens.
Besides the Seed Tag, you may also find cryptocurrencies classified under the Monitoring Tag. These cryptocurrency projects are often more established than Seed Tag projects. Typically, Monitoring Tag projects have a working product and a certain level of user adoption. However, they also come with their own risks, including potential legal and regulatory issues, technological challenges, market volatility, and so on.
Binance uses these tags to help users make more informed decisions when investing in cryptocurrencies, especially the ones that were recently created or listed. However, every user is advised to conduct their own research and due diligence when it comes to investing in any cryptocurrency.