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Binance Issues Important Risk Warning and User Safety Education on Binance Alpha
Summary: Binance has issued an important risk warning related to Binance Alpha, noting the discovery of suspicious activities attempting to profit from DEX liquidity mechanisms. Common risk signals include unusually high yield rates, price volatility, and excessive promotion of trading or incentive activities. Some strategies attract users to provide liquidity through rebates, creating the illusion of ...
Binance has issued an important risk warning related to Binance Alpha, noting the discovery of suspicious activities attempting to profit from DEX liquidity mechanisms. Common risk signals include unusually high yield rates, price volatility, and excessive promotion of trading or incentive activities. Some strategies attract users to provide liquidity through rebates, creating the illusion of an active market while concealing structural risks and sudden price retracements. Binance advises users to evaluate project market value, fully diluted valuation (FDV), and price fluctuations before adding liquidity, set reasonable liquidity ranges, and be cautious of high yield incentives in low liquidity environments. Traders are urged to understand token liquidity and holding distribution before trading, and remain vigilant of projects with high concentration of holdings or projects with sudden price surges without clear reasons. Binance will display prominent warnings on trading pages for high-risk projects (such as BR, KOGE, QUQ) to remind users to pay attention to potential risks.
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Link: Binance Issues Important Risk Warning and User Safety Education on Binance Alpha [Copy]
