Binance Alpha Point Update Rules: Is the Spring for Retail Investors Over?
Today, I was shocked to see this; I thought I couldn't use U for transactions anymore.
Upon closer inspection, I realized that it is not allowed to use tokens other than (spot) and (Alpha) tokens for trading.
So why is this the case?
Because when trading, liquidity provision is needed for us to directly exchange for the desired tokens or sell for U. Liquidity is not provided for free; a small fee must be paid to liquidity providers, also known as LP fees. This fee is generally 0.01% for ZKJ, meaning for a trading volume of 10,000, you have to pay 1 U. Currently, people are generally trading 16,000 or 33,000, leading to a fixed wear of about 1.6-3.3 U per day.
At this point, a genius created a worthless token, say this token is called ssbb, and he used this ssbb-zkj to trade, needing only to pay gas fees, which is nearly costless because he recouped the LP fees himself. He can trade as much as he wants.
Previously, there was also an announcement from Binance that made everyone aware of someone creating a token and adding liquidity to show a high price in the wallet, directly earning 4 points every day.
Binance's ban on this behavior undoubtedly strikes against studios and is more friendly to retail investors, allowing for fairer conditions for everyone.