Binance Alpha faces mounting pressure to implement platform reforms following sharp declines in user activity and trading volume. The downturn comes after sudden price collapses of ZKJ and KOGE tokens, which triggered widespread user withdrawals and eroded confidence in the platform.
Active users plummeted from 233,000 to 195,000 within three days, while trading volume crashed 63% from $2.04 billion to $749 million. The flash crashes occurred when large-scale whale withdrawals exposed critical liquidity vulnerabilities, causing rapid devaluation of both tokens.
Users and market analysts have criticized Binance Alpha’s heavy reliance on an airdrop-driven engagement model, calling for enhanced transparency and safeguards against market manipulation. Platform concentration risks were further highlighted as the AB token now constitutes 63% of daily trading volume, indicating unsustainable token distribution patterns.
Proposed solutions include implementing robust anti-bot mechanisms, establishing equitable point allocation systems, and reducing dependence on centralized tokens. These measures aim to restore user trust and stabilize the platform’s ecosystem amid growing concerns about structural weaknesses.