Mass Seller Off triggers a Binance Alpha Melt Down

Crypto users, influencers and new traders kept in mind using Binance Alpha to unlock benefits, while $ZKJ and $Koge tokens experienced dramatic price fluctuations that caused mass liquidation.

Some traders saw them Investment is wasted, Others found that the alpha whale cycle was traded between two alpha tokens, minimizing price exposure to farm points.

These victims posted screenshots asking questions about whether the program is really fair, angry threads, and questions on social media, with some critics even saying that Binance was too long to act.

Binance raised deeper concerns about governance, transparency and commitment to user protection when it closed the loophole and attempted to reduce the system game by determining that transactions between alpha tokens no longer count towards alpha points.

Why wasn’t it built into the system when rules were needed to prevent abuse?

Mass Seller Off triggers a Binance Alpha Melt Down

Large alpha holders (whales) have pulled liquidity out of the market, rapidly lowering prices and creating a shortage of available funds that have crashed tokens such as $ZKJ and $koge.

On the other hand, many traders have used borrowing or leverage to exchange these tokens on the blockchain. So when prices began to fall, it caused vending orders (clearing), pushing prices down further with a quick, uncontrollable chain reaction.

Users who invested or cultivated points in these tokens began to lose money, selling their holdings or halting trading activities completely, making it even more difficult for the remaining traders to buy and sell tokens without facing a major loss.

The report shows that over 100,000 users left the Binance Alpha Ecosystem in just a short time, as they feel they are being burned by sudden, serious losses.

Binance will stop point farming between tokens

Binance introduced a new rule that prevents users from earning alpha points when trading one alpha token for another on June 17th.

Before this change, traders can exchange tokens for $koge like $ZKJ and earn points even if they are swaying money between these tokens without adding real value to the market.

Some users say the change will prevent traders from using clever tricks to game the system as they mislead other traders and markets about the popularity and value of the token.

However, some say the new rules are too late and don’t address design issues that reward the overwhelming impact of large owners or whales who can manage high volumes and large markets and manipulate prices.

The new rules may reduce some of the most obvious abuses like the washing deal, but they will not completely correct the core challenges that have led to recent crashes and community backlash.

The crypto community criticizes vinance

Many users felt betrayed by the system as the rewards of investing time, money and effort into making money became less valuable and more difficult to earn.

Some users said they should return the points or rewards they lost because Binance wasn’t clearly explained before making a decision to trade or hold the token. In contrast, others wanted to explain to the company how the new system worked to prevent similar sudden changes in the future.

The backlash showed that many users lost faith in the Alpha brand as they thought it was designed to protect the image of a major player or company rather than creating a fair and open environment for all users.

Some people said Binance simply made these changes to keep investors happy rather than avoiding negative headlines and addressing issues surrounding fairness and transparency in the Alpha Points program.

Some members of the crypto community believe that other major exchanges will follow the example of Binance and change to reduce the risk of manipulation and abuse. Others believe the platform will continue to have traditional systems.

Binance can set up new examples in the crypto industry by building a more equitable and stable system that works well. However, if users react negatively or the new setup fails to bring enough people and trading activity, other exchanges may not want to follow the lead.

Binance should approach community members and discuss ideas about changes to the incentive system. Because users want to create a fair system where the platform cares about their experiences and benefits everyone when they feel they have heard.