1. How it works

Alpha Points are calculated daily based on:

  • Asset balance: Total balance in the account (calculated in USD or tokens). The basic formula is 2 USD = 1 point, and doubling the value increases the points by 1 (for example: 4 USD = 2 points, 8 USD = 3 points...).

  • Trading volume for Alpha token purchases: Only purchases are counted, not sales, to encourage users to hold tokens and ensure sustainability.

  • Evaluation period: Points are calculated based on activities in the last 15 days.

Users check points by accessing the Binance app, looking for the 'Alpha Points' section.

2. Advantages

  • Opportunities to participate in IDOs and airdrops: Alpha Points are criteria for participating in events like TGE or receiving airdrops. For example, the OKZOO project requires a minimum of 45 points to participate in TGE, or projects like Haedal Protocol ($HAEDAL) and EthSign ($SIGN) also have similar point thresholds (gradually increasing from 45 to 82 points through recent events). $BNB

  • Encouraging interaction: The system promotes users to engage actively (holding assets, making purchases), thereby increasing liquidity and participation in the Binance Alpha ecosystem.

3. Disadvantages

  • Gradually increasing thresholds and lack of transparency: The Alpha Points threshold for participating in IDOs or airdrops is continuously increasing (for example, from 45 points with $AIOT to 82 points with project B2). This creates difficulties and a sense of discouragement for users, as they do not know what the next threshold will be.

  • Financial risks: To achieve high points, users must maintain a large balance on Binance.

  • High competition: With a large number of participants and FOMO mentality, the chances of reaching the required points to participate in IDOs are becoming increasingly difficult. Many users have to grind continuously but are not guaranteed participation.

4. Comparison with other point systems in crypto

Point systems like Alpha Points are not new in the crypto market. Projects like Starknet have also used point mechanisms to reward users, but often spark controversy due to lack of transparency (for example, Starknet did not clearly disclose the minimum condition of 0.05 ETH). Compared to these systems, Binance's Alpha Points seem more transparent about how points are calculated, but the required threshold is unclear, making users feel passive.

Should I grind Alpha Points to participate in IDOs?

1. Reasons to grind

  • If you already have a large capital (over 10,000 USD) and regularly trade on Binance, accumulating Alpha Points is not too difficult. You can take advantage of opportunities to participate in IDOs or receive airdrops without much extra effort.

  • Binance Alpha is a reputable platform, launched on 17/12/2024, aiming to support early-stage Web3 projects. Some tokens introduced on Binance Alpha have the potential to be listed on Binance's main exchange, increasing profit opportunities if the project succeeds.

  • Even though the point thresholds are increasing, if you participate regularly, the chances of receiving airdrops (like $HAEDAL or $SIGN) are still feasible.

2. Reasons not to grind

  • High financial risks: To reach the point threshold (for example: 82 points for project B2), you need to maintain a large balance and trade continuously, which can lead to losses if the market declines. For instance, the price of BNB currently hovers around 603 USD (up 3% in 7 days as of 30/04/2025), but there is no guarantee that this trend will continue.

  • Inefficient cost-benefit: If you have to invest additional capital or trade just to grind points, the opportunity cost may be higher than the profits from the IDO. Instead of grinding points, you could directly invest in other potential projects.

  • FOMO mentality: Many participants join out of fear of missing out on opportunities, but in reality, not every IDO yields profits. Pressure from increasing point thresholds and competition can lead you into a cycle of negative psychology.

3. Alternative suggestions

  • Focus on quality projects: Instead of just grinding points to participate in IDOs, thoroughly research the projects recommended by Binance Alpha. Some projects may not require high points but still have growth potential.

  • Diversify strategies: Besides Alpha Points, you can participate in other IDO platforms like Bybit, Bitget, Okx...

  • Risk management: If you decide to grind points, only use the capital you are willing to lose. Avoid going all-in to reach the point threshold, as the crypto market always harbors significant risks.

Conclusion

Binance's Alpha Points system is an interesting mechanism to encourage user participation in the ecosystem, but it also comes with many risks and challenges, especially with the gradually increasing point thresholds and high competition. If you have substantial capital, are familiar with trading on Binance, and are willing to accept risks, grinding Alpha Points to participate in IDOs may be worth trying. However, if you have to invest additional capital or do not have time to thoroughly research projects, this may not be the optimal choice. Carefully consider your financial capacity, investment goals, and always do your own research (DYOR) before participating in any IDO.