Crypto Community Reacts to Binance Alpha Turmoil

Crypto users, influencers, and new traders were psyched about using Binance Alpha to unlock benefits, but the $ZKJ and $KOGE tokens experienced dramatic price swings that triggered mass liquidations.

Some traders saw their investments go to waste, while others watched Alpha whales cycle trades between two Alpha tokens with minimal price exposure to farm points.

These victims posted screenshots, angry threads, and questions on social media, asking whether the program was ever truly fair. Critics even said Binance waited too long to act. Binance raised deeper concerns about its governance, transparency, and commitment to user protection when it tried to close loopholes and reduce system gaming by ruling that trades between Alpha tokens would no longer count toward Alpha Points.

Mass Sell-off Triggers Binance Alpha Meltdown

Large Alpha holders (whales) pulled their liquidity out of the market, creating a shortage of available funds that caused prices to drop quickly, leading to a crash in tokens like $ZKJ and $KOGE.

Many traders used borrowed or leveraged money to trade these tokens on the blockchain. When prices started falling, it triggered automatic sell orders (liquidations), pushing prices down in a quick and uncontrollable chain reaction.

Users who invested or farmed points in these tokens began losing money and started selling their holdings or stopping their trading activities altogether, making it even harder for remaining traders to buy or sell tokens without facing large losses.

Reports show that more than 100,000 users have left the Binance Alpha ecosystem in a short period, feeling burned by the sudden and severe losses.

Binance Stops Point Farming Between Tokens

On June 17, Binance introduced a new rule that stops users from earning Alpha Points when they trade one Alpha token for another. Before this change, traders could swap tokens like $ZKJ for $KOGE and keep earning points without adding real value to the market.

Some users say the change will stop traders from using clever tricks to game the system, misleading other traders and the market about the tokens’ popularity and value. However, some feel this new rule is too late and doesn’t address the design problems that reward high trading volume or the overwhelming influence of large holders or whales who control much of the market and can manipulate prices.

While the new rule may reduce some obvious abuses like wash trading, it won’t fully fix the core challenges that have led to the recent crashes and community backlash.

The Crypto Community Criticizes Binance

Many users felt betrayed by the system since the rewards they invested their time, money, and effort into earning were devalued and became more difficult to earn. Some users demanded that Binance return the lost points or rewards, arguing that the new rules weren’t clearly communicated before they made trading decisions. Others sought explanations of how the new system would work to avoid similar sudden changes in the future.

The backlash showed a loss of trust in the Alpha brand, with many believing that the changes were designed to protect big players or the company’s image rather than create a fair and open environment for all users. Some even argued that Binance made these changes to avoid negative headlines and keep investors content instead of addressing the issues of fairness and transparency in the Alpha Points program.

Some community members speculate that other big exchanges might follow Binance’s example and change their practices to reduce risks of manipulation and abuse, while others think platforms will stick with traditional systems.

Binance has the opportunity to set a new precedent for the crypto industry by building a fairer, more stable system. However, if users react negatively or the new setup fails to attract enough trading activity, other exchanges may be reluctant to follow its lead. Binance should consult its community members for input on changing the incentive system; users are more likely to feel valued and trust that the platform aims for a fair system that benefits everyone when they feel heard.