Can traders trust Binance Alpha-launched projects? 41% of its projects tank

In a recent analysis, Binance Alpha, the innovative feature within Binance’s Web3 Wallet, completed the listing of 29 new tokens over the past week. More than 40% of the tokens have plummeted in value, and investors are now “raising eyebrows” on whether Binance Alpha projects are worth looking towards. 

According to an insight shared on X by @sankin_eth on X, 17 of the 29 tokens that debuted on Binance Alpha have yielded returns for investors, while 12, representing 41% of the total have shown a decrease in their Fully Diluted Valuation (FDV) from their initial listing values.

The market capitalization of these tokens at the time of listing ranged significantly, with the highest valued less than a billion dollars and the lowest above ten million. Binance Smart Chain (BSC) accounted for 41.4% of the listed assets. 

In terms of thematic classification or ‘narrative’, the tokens were categorized into six sectors, with artificial intelligence (AI) agents, animal-themed memes, and DeFi being the most prominent.

Tokens plummet after Binance Alpha launch

Although some tokens saw substantial gains after their launch announcement, several experienced sharp declines. BOB saw the steepest drop, plummeting 23.2% within 24 hours, while BANANA fell 14.4%. PSTAKE also faced a decline, albeit less severe, with a 7% decrease over the same period.

2024-12-23 #BinanceAlpha 上线资产统计
基于 Binance Web3 Wallet 的 Binance Alpha 在上周 3 天的时间分别分四批上线了 29 个代币（第四批时只上线了 9 个代币），过了一个周末，看看这些代币截至目前的市值表现如何？

盈亏表现
29… pic.twitter.com/rgV4AZ0mva

— 做表人小郭 (@sankin_eth) December 23, 2024

According to the analysis cited by Wu Blockchain on X, Solana memecoin Fartcoin (FARTCOIN), which was released in the project’s second batch, suffered a 16% FDV downtick. DeFi tokens SYRUP and SD, launched in the same batch, also suffered the same fate, dropping 15% and 21% in FDV values, respectively.

Moreover, tokens with smaller market capitalizations have shown significant volatility, with Shoggoth, FROG, BOB, TERMINUS, and GNON leading gains, each surging over 100%. Conversely, APX and GRIFFAIN recorded the steepest declines of 28% and 25%, in the mentioned order.

Per @sankin_eth analysis, Binance Alpha has not yet created a significant wealth effect, suggesting that the true potential might only be realized once selected projects are listed on Binance’s main spot market. The crypto enthusiast recommended Binance Alpha to consider tokens with higher FDVs, ideally over one billion, to provide substantial growth opportunities for secondary market investors. 

Additionally, they emphasized on the importance of diversifying the coins further, and implementing a delisting mechanism for underperforming tokens, akin to Binance’s main exchange strategy, to maintain a curated selection of assets. 

Binance US set to make USD services active in 2025

Binance US, the American subsidiary of global crypto exchange Binance, is preparing to reintroduce US dollar services, aiming for an early 2025 launch. The update was shared by interim CEO Norman Reed in a recent blog post, who believes the exchange is making huge progress towards restoring the platform’s USD offerings in the US.

“We are closer than ever to bringing back USD services and are focused on achieving this milestone in early 2025,” Reed stated. He further emphasized the platform’s commitment to offering low fees and high rewards to solidify its position in the competitive crypto market.

The announcement follows recent comments by the exchange’s CEO Richard Teng, who, in a December 9 Bloomberg interview, described discussions about re-establishing the exchange in the United States as premature.

The crypto exchange debuted in 2019, offering regulated cryptocurrency trading for American users. However, its operations faced a significant challenge in June 2023 when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance. The SEC accused the company of failing to properly register Binance US as a securities exchange, and that they violated several regulatory laws.

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