It's hard to imagine that in such a short time, Binance Alpha has already evolved into a product that can occupy mainstream market mindshare.
Previous Binance⬇️
Not to mention whether it can provide users with quality asset options, it has been profiting from project teams through listing requirements, Launchpool (mainly to give large $BNB holders a reason to continue holding), etc., draining the market.
However, with the continued decline in liquidity and the political uncertainty brought by Trump, large financing projects, even with fast tracking through all CEXs, cannot achieve a high valuation at TGE.
The emergence of Binance Alpha and its product iteration is more of a compromise attempt in response to community voices and B-end project teams' requests for listings/cooperation.
Key points are as follows:
1. Binance does not list every project, but what if those project teams are willing to offer benefits? And once listed on Binance, the community often criticizes the sell-off; how to balance this?
Thus, Binance Wallet IDO was born.
First, these project tokens will quickly go through Binance Alpha after TGE, equivalent to a listing observation area, allowing Binance a large operational space, and community negative feedback is not very strong. After all, users can earn Alpha Points, making tens or even hundreds of dollars each time, which is quite nice.
Secondly, those who previously wanted to list on Binance can throw their projects here, giving project teams at least a glimmer of hope for listing, and the community won't criticize, achieving a win-win compromise.
Finally, for project teams, with tokens in the observation area, the market cap is still low, and the operational space is large. Who knows, with some effort, Binance's spot market may rise. For instance, recently well-performing $AIOT (which is also one of my holdings) has adopted a low circulation high FDV model, with a very low market cap at TGE and low operation costs, allowing for significant price increases. Higher market trading volumes increase the likelihood of being listed on Binance.
You can check @ai_9684xtpa's on-chain analysis for specifics.
2. Through Binance Wallet IDO + Binance Alpha + Binance contracts, a strategy is formed to capture users and maintain user stickiness using wealth opportunities and expectation management for its wallet products. Mainly, if Binance lists contracts, they can earn fees, which is quite nice.
From my personal experience, I used to never use Binance Wallet products, but now I also start participating in “exam score brushing,” striving for every IDO quota. From the fact that I rush to check if my Alpha Points pass every time an IDO announcement is made, there is no doubt that I have become Pavlov's dog.
Low market cap at opening also provides space for value discovery, rather than meeting at the peak after Binance Launchpool.
3. For project tokens, every token that has been through Binance Wallet IDO + Binance Alpha + Binance contracts is a good shell. After all, these tokens have a stronger market mindshare capture ability than ordinary tokens.
For example, I think $BID is a very good shell; the team has been doing things and closely collaborating with the Bittensor ecosystem. If some shady group is willing to collaborate with the project team, who knows, they might pull off a dawn.
Although they are all good shells, how to select them? Then we can only investigate one by one, focusing on trading volume and contract positions. This is a labor-intensive task, but at least it is logical, and the probability of making money is higher.
4. With users gained and stickiness established, Binance Alpha has also expanded another route, collaborating with public chain ecosystems—similar to OKX Web3 Wallet and project cooperation for benefits. Here, the collaboration with Sonic $S is mentioned. The airdrop of $S and Sonic ecosystem assets will be launched for active traders on Binance Alpha.
First, it expands the richness of the public chain supported by its Wallet products; second, it uses others' incentives to attract new users for its own products. In the future, there will definitely be more dAPPs and public chains joining Binance's model.
User experience may temporarily not be as good as competitors, but with incentives and influence in place, users will naturally be compelled to use it. As incentives rise, users will also increase. The product will then have time to iterate on user experience. At the same time, with more users, there will be more feedback, making it easier to improve user experience.
That's all. This is my general impression of Binance Alpha.
