This is a general announcement. Products and services referred to here may not be available in your region.
Fellow Binancians,
Recently, we have noticed some suspicious, coordinated activities that aim to profit from users who are providing DEX liquidity. Common red flags include unusually high yields, rapid changes in price, or aggressive promotion of trading activities and incentives.
One common strategy is the use of trading rebates or similar incentives to lure users into providing liquidity. These mechanisms can simulate positive market conditions and engagements, but often conceal significant structural risk and potential abrupt price reversals.
For Liquidity Pool (LP) Providers: Before adding liquidity, carefully assess the project’s market cap, fully diluted valuation (FDV), and price volatility. Select your liquidity range wisely, as providing liquidity involves risks including impermanent loss. Be cautious of unusually high LP yields, especially in low-liquidity environments.
For Traders: Understand token liquidity and holder distribution information before trading. Be extra cautious of tokens showing signs of concentrated ownership or sudden and unexplained price increases.Track liquidity changes, token distribution and trading patterns. Stay informed and make decisions based on research, not hype.
Risk Banner: For projects with notable higher risk, Binance will display a risk warning banner on token trading pages (e.g. BR, KOGE, QUQ). Please pay attention to such risk warnings before conducting trading.
Crypto markets can be volatile. Always do your own research (DYOR), understand the risks, manage your exposure wisely, and remain alert to potential bad actors and manipulation tactics.
Note: There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.
Thank you for your support!
Binance Team
2025-07-15
Disclaimer: Binance Alpha features emerging digital assets which are not listed on the Binance Exchange. The labelling as an Alpha Asset does not imply that such asset will be listed on the Binance Exchange. You may lose all or part of what you invested. Please note that (i) Alpha Assets are exposed to increased price volatility, and therefore higher risks (ii) you are exposed to price slippage and blockchain fees (iii) Alpha Assets cannot be withdrawn from the Binance Exchange. Binance will not be responsible for any losses that you may incur arising from an investment in Binance Alpha Assets.
