Binance Releases Important Risk Warning and User Safety Education on Binance Alpha

Odaily Planet Daily News Binance issued an important risk warning related to Binance Alpha, saying that some suspicious behaviors have been found recently to try to profit from the DEX liquidity mechanism. Common risk signals include abnormally high yields, sharp price fluctuations, and excessive publicity of transactions or incentive activities. Some strategies attract users to participate in liquidity provision through rebates and other means, creating the illusion of an active market, but in fact covering up structural risks and sudden price pullbacks. Binance recommends that users pay attention to the following matters: 1: Liquidity providers (LP): Before adding liquidity, the project market value, fully diluted valuation (FDV) and price fluctuations should be evaluated, and the liquidity range should be set reasonably. Be wary of high-yield incentives in a low-liquidity environment; 2: Traders: Before trading, you need to understand the liquidity and position distribution of tokens, and be wary of projects with high position concentration or sharp price increases for no obvious reason; 3: Risk warning banner: Binance will display obvious prompts on the trading pages of high-risk projects (such as BR, KOGE, QUQ) to remind users to pay attention to potential risks.