The sudden collapse of ZKJ and KOGE has slowed the platform's growth and destroyed user trust. To rectify the situation, Binance will have to reconsider the operational mechanisms of the platform.
Why are trading volumes on Binance Alpha falling
According to D**e, the number of active users on Binance Alpha from June 12 to June 15 decreased by 38,000 (from 233,000 to 195,000), while the number of active trading users dropped to 55,000, indicating a decline in trust towards the platform.
The main reason for the user exodus is the unexpected collapse of ZKJ and KOGE tokens.
Major holders withdrew their assets, provoking a sell-off that the pool structure could not handle. Trading volume, which had previously peaked at $2.04 billion on June 8, fell by 63% to approximately $749 million in just a few days.
After the sharp decline in token prices, Binance announced a new policy aimed at limiting 'fake volume' tactics that do not bring real market value.
However, the community deemed these measures too late. Some users have called for Binance to return lost points or rewards, noting that opaque policy changes have caused them significant financial and trust damage.
What will happen to Binance Alpha next
Recent events have revealed serious problems in the Alpha system: its model, based on airdrops, encourages short-term hype and leads to volume concentration in easily manipulable tokens.
The AB token now accounts for more than 63% of the daily trading volume on Binance Alpha. Previously, ZKJ and KOGE led the way. However, when major holders withdrew their funds, the system collapsed immediately.
To restore positions and regain user trust, Binance needs to create a transparent points distribution mechanism to prevent artificial volume increase, reduce dependency on centralized tokens, and focus on high liquidity projects.
It is also necessary to implement anti-bot technologies, improve monitoring of abnormal trading activity, and increase transparency in policy adjustments. This way, users will know about changes in advance and can provide feedback.