I thought the weekend would pass without any major fluctuations, but unexpectedly, the least likely place to crash actually did. Zkj, which previously resembled a stablecoin, suddenly plummeted over 80% in a single day!
In the past, everyone believed that only old coins or coins completely controlled by whales would suddenly crash. Who would have thought that even the hottest projects in Binance's Alpha sector could have issues!
Shouldn't projects on Alpha strive to perform well and compete for a spot on the Binance spot market? Why are they already rushing to cut losses before they're even listed?
The reason is simple, as demonstrated by the two projects, Koge and Zkj: they hold various activities every day to boost trading volume, all to compete for that coveted spot on the spot market! But once they reach the spot market, isn't the ultimate goal to sell their coins at a high price to retail investors and cash out?
The problem is that the proportion of Alpha projects that can truly make it to the spot market is too low, only 12.2%. Moreover, just because you have the highest trading volume doesn't guarantee a spot; it's like Binance's voting system for delisting coins. FTT, which always gets the most votes to be kicked out, still can't seem to go down. The chances of getting onto the spot market are far from ideal!
Therefore, rather than waiting foolishly for a non-existent opportunity to get onto the spot market, Koge and Zkj decided to take advantage of the current high platform popularity and good liquidity to directly sell all their coins to the market and cash out. They must have planned this well in advance. Starting last week, many people suddenly began to say that trading fees between these two projects were low and losses were minimal, which is clearly a sign of kickbacks.
Now the situation is even clearer: the number of people providing liquidity LP for these two projects is not increasing but rather decreasing. The recent two rounds of Alpha points have already risen to over 240 points to participate, and an individual account can only earn about 50 dollars on average. What does this indicate? It indicates that the most popular period for Alpha airdrops has already passed!
