Binance cracks down on bot activity in Alpha token program

Binance has identified and moved to restrict the use of bots exploiting Alpha, its early-access token distribution system, the exchange said on June 4.

In a post, Binance said it had “recently detected certain groups using bots to participate in Alpha activities, which undermines the fairness of the Binance Alpha Points program.” It added that it had taken measures to halt the activity. “We have upgraded our risk control systems to enhance the detection and handling of such behavior,“ the exchange said.

Binance said any use of bots will be treated as a violation by the exchange. The company also said that it “reserves the right to revoke the Binance Alpha Points eligibility of accounts involved in such activities and may impose further restrictions where necessary.”

Binance had not responded to Cointelegraph’s request for comment at the time of publication.

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What is Binance Alpha?

Binance Alpha is an early-access hub inside Binance Wallet where users can discover vetted, early-stage Web3 projects, buy “Alpha” tokens before potential exchange listings and collect Alpha Points. Those are points in a scoring system based on wallet balances and trading activity that determine eligibility for token-generation events and airdrops.

The program has become a major driver of BNB Chain activity. According to reports from May, over 71% of Alpha tokens were launched on BNB Chain, and the network has seen more than 1 million new addresses per day and surging weekly volumes.

This is not the first time the exchange has stepped up enforcement on the service. In early May, Binance announced that its Alpha platform had implemented a new comprehensive token review framework to remove tokens that don’t meet specific quantitative and qualitative criteria.

Related: Bear markets are temporary, but airdrops are forever

Binance Alpha “killing airdrops”

The service attracted its fair share of criticism, with some accusing it of “killing airdrops” with its arrangements. Some users also raised concerns about it hindering early community building through testnet usage.

Source: satyaXBT

An airdrop is a marketing and distribution method in which a cryptocurrency project distributes free tokens to holders of an existing cryptocurrency (or to users who meet specific criteria) to raise awareness, reward early supporters or decentralize token ownership. Recipients typically receive tokens directly into their wallets at no cost, often based on past holdings, onchain activity or participation in promotional tasks.

Giving away digital assets is a surefire way to attract attention. For this reason, airdrops are also often at the center of scam tactics where bad actors exploit the hype, draining wallets through fake campaigns.

Magazine: Binance Wallet ‘killing’ MetaMask and airdrops, Chinese RWA tokens: Asia Express