- Binance introduces a two-phase airdrop system after bot manipulation threatens Alpha Points integrity.
- ZKJ and KOGE tokens collapse in a liquidity spiral triggered by whale exits and speculative Alpha farming.
- Binance warns users of bot abuse, excluding mutual Alpha token trades from rewards and tightening airdrop rules.
Binance exchange has announced a significant overhaul of its Alpha Airdrops program, starting June 19th. The move to a new two-phase system comes just days after the collapse of the ZKJ and KOGE tokens exposed how the platform’s incentive structure could be exploited by whales and bots.
In the first phase, users with Alpha points above a certain threshold (X) can claim the airdrop. In the second phase, the threshold drops (Y < X), and tokens are distributed on a first-come, first-served basis until exhausted.
The ZKJ and KOGE Collapse Exposed Program’s Flaws
The fragility of the previous Alpha program was laid bare last week. The price of ZKJ, a token from Polyhedra Network, nosedived 91% in a single day. Its collapse followed a liquidity crisis involving its sister token, KOGE, which dropped from $62 to $24 in hours.
Related: Binance Alpha: Discover High-Potential Tokens Before They Go Mainstream
The two tokens were linked via a shared liquidity model and were heavily promoted through the Binance Alpha Points program. On-chain data confirmed that users could “farm” points by flipping between ZKJ and KOGE, which artificially inflated trading volumes.
This allowed several large whale wallets to exit their positions for over $8 million right before the liquidity pools were drained, triggering the crash.
Binance Responds with New Rules and a Crackdown on Bots
In response, Binance has implemented immediate changes. The exchange has now excluded mutual trades between Alpha tokens from earning points. It also revealed it had detected bot activity designed to unfairly farm Alpha Points through non-human interactions.
This change comes alongside the exclusive launch of Spark (SPK) on Binance Alpha on June 17th, with 2,000 SPK tokens available to Alpha users who have at least 240 points. However, each claim will burn 15 Alpha points and must be confirmed within 24 hours, adding urgency and exclusivity to the drop.
Related: A Look at the Top 10 Crypto Losers on Binance as Market Dips
From Incentives to Exploits: Alpha’s Moment of Reckoning
Launched in 2024, the Binance Alpha program was designed to reward early believers of emerging projects via on-chain activity and liquidity contribution. But amid unclear rules and limited safeguards, it quickly turned into a high-stakes game for speculators.
Binance’s historical stamp of approval once provided retail investors with a degree of confidence. Now, with tokens like ZKJ and KOGE crashing under Alpha-fueled schemes, trust is eroding.
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