Despite being a platform developed to promote early-stage tokens, Binance Alpha has failed to attract the expected massive market interest. Out of the 29 tokens listed last week, 12 of them experienced a decline in Fully Diluted Valuations (FDV) compared to pre-announcement levels and did not meet investor expectations. These projects, which mostly focus on AI, DeFi, and Meme Coin themes, have not been successful due to current market conditions and project scale.
Binance Alpha aims to showcase early-stage crypto projects that have a chance of being officially listed on Binance by integrating with Binance Wallet. Many investors found this new feature exciting, but most of the tokens on the platform have not gained value.
Binance designed Binance Alpha as a pre-listing platform to increase transparency in the token review process and allow traders to more easily identify promising projects. This platform allows investors to make more accurate predictions about Binance listings.
According to analysis by investor @sankin_eth, 12 of the 29 tokens listed on Binance Alpha last week had lower diluted value compared to before the announcement. The four best-performing tokens at the time of listing only doubled in value, with market caps ranging between $10 million and $20 million.
Tokens listed on Binance Alpha have underperformed those listed on Binance’s main platform, with PNUT and ACT, for example, experiencing tenfold increases after their spot market listings on Binance.
Investor Sankin noted that Binance Alpha has not made a significant impact so far, and said: “Maybe the situation will change when a project is listed on the spot market. The market values of these tokens range from $ 10 million to $ 1 billion, but this difference is very large. Focusing on projects with FDV of $ 100 million and above may increase the probability of price appreciation.”
The tokens introduced with Binance Alpha are centered around themes such as AI, DeFi, Meme Coins, and DeSci, while they are available on different blockchain platforms such as Base, Ethereum, Solana, and BNB Smart Chain (BSC). BSC-based tokens make up 41% of the total list.
Investor Dov attributed the poor performance of Binance Alpha tokens to the current market conditions. “Due to the bad market environment, the community’s interest in Binance Alpha has decreased. I hope that the projects will get better over time,” Dov said.
At the time of writing, Binance had announced five tokens, namely MGP, ZEREBRO, COOKIE, WHALES, and ORDER. However, according to market watchdog WuBlockchain, Binance has since delisted the MGP token.
