KOL Master Brother from Australia pointed out that some wild farming groups have capitalized on the benefits of Binance Alpha, targeting users who boost Alpha trading volume for harvesting. They select low market cap Alpha tokens, absorb liquidity, and even seize chips from the project team, organizing liquidity pools. It's understood that the daily yield of the liquidity pool for Alpha tokens can reach as high as 3%. These wild farms earn transaction fee revenue, and as soon as there’s a slight disturbance (decline in boosted score data or an increase in LP pool competitors), they dump and switch to another token, leaving the blame to the project team.
Is the daily yield of the Binance Alpha liquidity pool as high as 3%?
He stated that these wild farming groups seek small market cap tokens newly listed on Alpha, acquiring control rights at low costs (similar to $QUQ) or even seizing chips from high-control Alpha tokens ($Seraph). Then they control the line chart themselves, or wait for the project team to control the line chart, and then take the opportunity to add a large amount of liquidity, aiming to entice Alpha score boosting users to participate or add LP.
Because there aren't many competitors for small tokens adding liquidity pools, they can even achieve a daily yield of 3%. If risks appear (decline in transaction data, someone adds to the pool for profit, etc.), they will directly dump and move on to the next one. So if you see a small token listed on Alpha, and after the airdrop the price not only doesn't drop but even rises, it’s likely not because the project team is genuinely gathering chips, but rather that wild farming is seizing chips and sniping.
Master Brother from Australia revealed that a high-control token had a circulation volume only equivalent to the airdrop from Binance Alpha, and it was found to be impossible to buy back because most were seized by wild farms. When the project team added LP themselves, they discovered that only 30% of the entire pool was theirs, while the remaining 70% belonged to wild farms. At this point, if you are the project team, what choice do you have? Dump and give it to the wild farms? Then there's no need to stay in the Binance ecosystem, effectively ending the project career. Dance with the wild farms? Not long after, they would see many boosters and directly dump, leaving the project team to take the blame.
The Alpha tokens from the wild farming control are as dangerous as canoeing during a typhoon.
Taking $QUQ at the time as an example, a circulation market cap of $4.7 million and a pool of $10 million - is this normal? To describe it in Taiwanese internet slang, it’s like canoeing during a typhoon; something could happen at any moment. Master Brother from Australia revealed that he heard the project teams newly listed on Alpha were required by Binance Wallet to lock their LP pools, and from what he knows, often the LP depth isn’t added by the project team themselves, but rather by wild farms trying to latch on. They use robots to monitor token prices, and as soon as there’s any disturbance, they automatically dump.
Just like the $BR daily transaction fees of $400,000, it's hard to say how much goes into the project team's pockets, but a lot ends up in the wild farming pockets. So even if you ask the project team to lock the added LP, it doesn’t have much effect. How much can the project team add? At most $1 million to $3 million, while the depth of $BR LP is $45 million. Is it possible for all $45 million to be locked?
Many people boost small tokens mainly because the market maker controls the line, keeping the token price stable like a stablecoin. However, in this situation, Master Brother from Australia suggests that boosting $BNB is safer than boosting small tokens.
This article explores the risks of boosting Binance Alpha? KOL dissects the systematic chip gathering, LP organization, and dumping by wild farming groups. It first appeared in Chain News ABMedia.
