Binance Alpha Faces Wave of User Exodus After ZKJ and KOGE Crashes

Once the center of the market, Binance Alpha is now witnessing a sharp decline in both users and trading volume.

This is how the rapid collapse of ZKJ and KOGE has significantly hindered the platform's interesting development.

Binance Alpha Sees Declining Trading Volume

Data from Dune shows that the number of active users of Binance Alpha dropped from 233,000 on 12/06 to 195,000 on 15/06, equivalent to losing nearly 40,000 users in just three days. Notably, the number of active trading users decreased to around 55,000, indicating an almost unstoppable decline in spirit and confidence.

The root cause stems from the unexpected rapid collapse of two important tokens, ZKJ and KOGE. The main reason is that whale wallets rapidly withdrew liquidation, causing a widespread selling panic, with the pool structure unable to withstand accumulated sell orders.

After this collapse, Binance Alpha's trading volume, previously peaking at $2.04 billion on 08/06, dropped 63% to around $749 million just a few days later.

Immediately after the token price plummeted, Binance announced a new policy aimed at restricting "fake volume" strategies that do not bring real value to the market. However, the community believes this response is "too late".

Some users have called for Binance to refund lost points or rewards, emphasizing that the lack of transparency in policy adjustment has caused significant financial and trust damage.

What Should Binance Alpha Do Next?

Recent events have exposed major flaws in the Alpha system: its airdrop-based model encourages short-term psychology, leading to volume concentrated on easily manipulated tokens.

The AB token currently accounts for over 63% of trading volume on Binance Alpha in a day. Previously, ZKJ & KOGE also held top positions. When large wallets withdraw funds, the system immediately collapses.

"No goal is truly good. Even with low wear, there is still a risk of price volatility," an analyst on X commented.

To rebuild and recover, Binance may need to establish a transparent point allocation mechanism to prevent artificial volume, reduce dependence on concentrated tokens, and prioritize projects with strong liquidity and distribution.

It also needs to deploy anti-bot technology to control abnormal trading activities and enhance transparency in policy adjustments, ensuring the community is informed early and has opportunities to respond to maintain trust.