The project party is like a host renting a venue to hold a party.
They first pay for the airdrop ticket money and distribute it to the venue's owner, Binance.
The project party collects tickets (transaction fees) and can also slowly sell their own 'tickets' (tokens).
## Users are like party participants, some earn points for airdrops by helping (market making, boosting trading volume) to earn a little tip.
Some earn by forming LPs and trading in the swings for profits or promoting new users (paid courses).
While Binance is like the venue owner at the party, reaping benefits and distributing profits to all parties at each time segment.
But there are always people who are unhappy at the party because they lost money.
1 Gamblers: After being trapped, they start studying K-lines, and when they lose money, they want to learn.
2 Hoarders: They receive free 'tokens' but do not sell, hoping for higher prices and missing the opportunity to sell.
3 Smart money: They want to enter and exit quickly, but the market changes, and they lose money.
Detailed profit analysis.
Project parties: They earn income through high trading volumes from transaction fees. For example, a certain token in the Alpha area has a daily trading volume of $10 million, which can generate $50,000 in daily income based on a 0.5% fee rate. If the project invests $3 million for airdrops, they can recover costs in about 60 days through transaction fees. Additionally, the project can achieve stable cash flow by gradually selling tokens ('offloading') daily. Assuming a token in the Alpha area is also listed on Binance's contract, the project party can gain additional profits.
Alpha's liquidity advantage: Compared to ordinary exchanges, Alpha's core attraction is its high liquidity, allowing even low market cap tokens to be easily bought and sold, providing an ideal platform for project parties to sell tokens. If the project party feels that trading volume has not reached their ideal level, they can also put some tokens into Alpha's area to hold trading competitions to further enhance liquidity.
Trading volume growth: Alpha's daily trading volume increased from $1 billion on May 10 to $5 billion on May 20, showing rapid market scale expansion. If a token is simultaneously traded in Binance's contract market, profit potential further increases.
Data from DUNE bnbchain/Alpha tokens - minimum fees.
Detailed description of the loss side.
1 Speculators: These participants usually take high risks.
Attempting to profit from the huge attention on the token's listing day by participating under high volatility, but if the market trend is unfavorable, they may face significant losses.
2 Hoarders: Refers to those who receive airdropped tokens but choose not to sell, possibly missing profit opportunities because the market price is lower than their expectations.
3 Short-term traders: Also known as 'swing traders', they try to profit from quick buying and selling, but if market predictions are wrong, they can easily incur losses.
4 Participants providing liquidity (such as market makers) may also face risks; not all participants can profit in the overall market.
Why is the Alpha area like a semi-level 1.5 primary market?
The Alpha market lies between the primary market (direct issuance) and the secondary market (public trading), due to its enormous liquidity and high trading frequency. This market design encourages participation from both project parties and all participants, offering advantages over traditional exchanges (such as in cases of lower trading volumes).
