What are the risks of using Binance Alpha? KOL breaks down the systematic Accumulation, LP formation, and dumping by the wild market maker group.

KOL Master Brother in Australia pointed out that some wild market maker groups have taken advantage of the bonuses from Binance Alpha, targeting users who inflate Alpha trading volume for profit. They select low market capitalization Alpha tokens, engage in Accumulation, and even snatch chips from the project party to organize liquidity pools. It is understood that the daily yield of the liquidity pool for Alpha tokens can reach up to 3%. These wild market makers usually earn from transaction fees, and as soon as there is a slight disturbance ( in the scoring data decline, or if competitors in the LP pool increase ), they will dump the tokens for the next one, leaving the blame to the project party.

Build a Binance Alpha liquidity pool with daily returns of up to 3%?

He stated that these wild market maker groups will look for small market capitalization newly listed Alpha tokens, obtaining control rights at low cost ( similar to $QUQ) and even snatching accumulation from the highly controlled Alpha tokens ( $Seraph). Then, they will control the line chart themselves, or wait for the project party to control the line chart, and then take the opportunity to add a large amount of liquidity, with the aim of enticing Alpha users to brush points or add LP.

Because there are not many opponents for small coins in the liquidity pool, it can even achieve a daily return of 3%. If risks are detected, and the ( order data drops, and someone adds to the pool for profit sharing, etc., ), they will dump and leave to do the next one. So if you see a small coin listed on Alpha, and after the airdrop the coin price not only does not drop but even rises, it may not be the project party's conscience that is collecting chips, but rather the market maker is sniping for chips.

A master from Australia revealed that there is a token with a high control of accumulation, and its volume is only that little from the Binance Alpha airdrop. As a result, it turns out that it cannot be bought back at all, because most of it was snatched by wild market makers. When the project party adds LP by themselves, they find that only 30% of the entire pool belongs to them, while the remaining 70% is controlled by wild market makers. At this point, if you were the project party, how would you choose? Dumping for the wild market makers? Then there's no need to mix in the Binance system anymore, and the project career would basically be over. Dancing with the wild market makers? It won't be long before they see more people participating, directly dumping and leaving, leaving the project party to be scolded.

Using the Alpha coin controlled by the market maker for accumulation is as dangerous as boating during a typhoon.

Taking $QUQ at that time as an example, is a circulating market capitalization of 4.7 million and a pool of 10 million normal? To describe it in Taiwanese internet slang, it’s like going rafting on a typhoon day, where something could go wrong at any moment. The Australian master brother revealed that he heard that new projects on Alpha were required by Binance Wallet to lock their LP pools. From what he knows, many times the LP depth is not added by the project party themselves, but rather pasted on by market makers to take advantage. Using bots to monitor coin prices, as soon as there is any sign of disturbance, they automatically dump.

Just like the $BR daily fee of 400,000 USD, it's hard to say how much goes into the project party's pocket, but a lot goes into the market maker's pocket. So even if we require the project party to lock the LP, it doesn't have much effect; how much can the project party add? At most 1 million to 3 million USD, the depth of $BR LP is 45 million, is it possible for all 45 million to be locked?

Many people trade small coins mainly because market makers control the lines, making the token price fixed like a stablecoin. However, under such circumstances, Master Brother from Down Under suggests that trading $BNB is safer than trading small coins.

What are the risks of brushing Binance Alpha in this article? KOL dissects the systematic accumulation of the wild market maker group, forming liquidity pools, and dumping. This first appeared in Chain News ABMedia.