It's hard to imagine that in a very short time, Binance Alpha has evolved into a product capable of occupying mainstream market mindshare.
The previous Binance⬇️
Not to mention whether it can provide users with quality asset choices, it has been consistently earning money from project parties through coin listing requirements, Launchpool (mainly to give large $BNB holders a reason to continue holding), etc., draining the market.
However, with the continuous decline in liquidity and the political uncertainty brought by Trump, large financing projects cannot achieve a high valuation at TGE even after passing through all CEXs quickly.
The emergence of Binance Alpha and the iteration of products are more of a compromise attempt to respond to community calls and B-end project parties for coin listings/cooperation.
Key points are as follows:
1. Binance doesn't list just any project, but what if those project parties are willing to give discounts? Plus, once listed on Binance, there's a tendency for community backlash against selling, how to find a balance?
Thus, Binance Wallet IDO came into being.
Firstly, these project tokens will quickly pass through Binance Alpha after TGE, equivalent to a coin observation area, where Binance has a large operational space and community backlash is not very strong. After all, users can earn Alpha Points, making a few dozen to over a hundred dollars each time is quite enjoyable.
Secondly, those who previously wanted to list on Binance can all throw their projects here; at least the project parties see hope for listing, and the community won't complain, providing a win-win compromise.
Finally, for project parties, tokens in the observation area have low market value, a large operational space, and with some effort, they might even pump up on Binance's spot market. For example, recently, $AIOT (which is also one of my holdings) has performed well by creating a low circulation high FDV model, with very low market value at TGE and low operating costs, leading to significant price hikes. High market trading volume also increases the chances of being listed on Binance.
For specific details, you can check @ai_9684xtpa's on-chain analysis.
2. Through the combination of Binance Wallet IDO + Binance Alpha + Binance contracts, they use wealth opportunities and expectation management to capture users for their wallet products and maintain user stickiness. Mainly, once Binance lists a contract, they can also earn transaction fees, which is quite advantageous.
From my personal experience, I used to never use Binance Wallet products, but now I am also participating in the "college entrance examination score brushing", striving for each IDO quota. The fact that I check whether my Alpha Points pass every time an IDO news is announced shows that I have undoubtedly become Pavlov's dog.
With a low opening market value, it allows for value discovery instead of only meeting at the peak after Binance Launchpool.
3. For project tokens, each token that has gone through Binance Wallet IDO + Binance Alpha + Binance contracts is a good shell. After all, these tokens have a stronger market mindshare capture ability than general tokens. For example, I think $BID is a very good shell; the team has been active and closely cooperating with the Bittensor ecosystem. If there are groups willing to collaborate with the project parties and stir things up, it might even lead to a dawn.
Although they are all good shells, how to choose? That can only be checked one by one, focusing on trading volume and contract holding. This is a labor-intensive task, but at least there is logic to follow, and the probability of making money is higher.
4. With users and stickiness established, Binance Alpha has expanded another path by collaborating with public chain ecosystems—similar to OKX Web3 Wallet and project collaborations. This refers to the cooperation with Sonic $S. The $S and Sonic ecosystem asset airdrop will be launched for active traders on Binance Alpha within Sonic.
Firstly, it expands the richness of its Wallet product supporting public chains, and secondly, it uses others' incentives to attract new users for its own products. In the future, more dAPPs and public chains will certainly join this Binance model.
Although the user experience is currently not as good as competitors, once incentives and influence are established, users will naturally be compelled to use it. With increased incentives, user numbers will rise. The product will then have time to iterate on user experience. Meanwhile, with more users, there will also be more feedback, making it easier to improve user experience.
That's all. This is my general feeling about Binance Alpha.
