Binance Alpha, a new feature integrated into the Binance wallet, was created to showcase promising early-stage cryptocurrency projects that have the potential to be officially listed on the Binance exchange in the future.
Many investors were very excited about this new feature. However, the data shows that not all Tokens appearing on the Binance Alpha list have increased in value.
Binance Alpha Fails to Create the Expected FOMO
Binance launched Binance Alpha as a Token selection platform before listing to increase transparency in the listing review process on Binance. This platform allows traders to identify truly promising projects and improve the predictability of listings on the Binance exchange more effectively.
Investor @sankin_eth analyzed the data and revealed that 12 out of 29 Tokens announced on Binance Alpha last week currently have a lower Fully Diluted Valuation (FDV) compared to before the announcement. The four best-performing Tokens only doubled in value, with market capitalizations ranging from $10 million to $20 million at the time of listing.
Tokens listed through Binance Alpha have performed worse than Tokens listed on the Binance main platform. For example, PNUT and ACT have recently experienced ten-fold increases after being listed on the Binance spot market.
"Binance Alpha has not had any significant impact. The situation may improve when a project is listed on the spot market. These Tokens have market capitalizations ranging from $10 million to $1 billion, but the gap is too large. I believe focusing on projects with FDV of $100 million or more will have a higher potential for price appreciation." Investor sankin commented.
The Tokens introduced by Binance Alpha span various market themes such as AI Agents, AI, DeFi, Meme Coin, and DeSci, and are built on multiple blockchains including Base, Ethereum, Solana, and BNB Smart Chain (BSC). Tokens based on BSC dominate the list, accounting for 41% of the total.
Investor Dov believes the poor performance of Binance Alpha Tokens is due to the overall market conditions.
"With the current poor market environment, the community's attention to Binance Alpha has decreased. I hope the Binance Alpha projects will improve over time." Investor Dov commented.
At the time of writing, Binance has just announced a new batch of Tokens including MGP, ZEREBRO, COOKIE, Whale, and ORDER. However, according to market observer WuBlockchain, Binance has subsequently removed the MGP Token.
