Binance issues important risk warning and user safety education regarding Alpha
ChainCatcher news, according to the official announcement, Binance has recently noticed some suspicious activities aimed at profiting from users providing liquidity to decentralized exchanges (DEX). Common risk signals include: abnormally high yields, rapid price fluctuations, or excessive promotion of trading activities and incentives.A common strategy is to attract users to provide liquidity through trading rebates or similar incentive mechanisms. These mechanisms can simulate a positive market environment and active trading, but often obscure significant structural risks and potential sudden price reversals. For the reasons mentioned above, users are strongly advised to pay attention to the following:For liquidity pool (LP) providers: Before adding liquidity, carefully assess the project's market capitalization, fully diluted valuation (FDV), and price volatility. Choose the liquidity range wisely, as providing liquidity carries risks including impermanent loss. Be especially cautious of abnormally high LP yields in low liquidity environments.For traders: Before trading, understand the liquidity and holder distribution of the token. Remain highly vigilant towards tokens that show a highly concentrated holding or experience sudden price increases without obvious reasons. Pay attention to liquidity changes, token distribution, and trading patterns. Stay informed and make decisions based on research rather than speculation.Risk warning banner: For projects with higher risks, Binance will display a risk warning banner on the token trading page (e.g., BR, KOGE, QUQ). Please be sure to pay attention to such risk warnings before trading.