The Binance Alpha program, initially promoted as an effort to support early-stage crypto projects, has instead faced sharp criticism from various groups within the crypto community. Several users on platform X argue that this initiative deviates from the decentralization principles fundamental to the Web3 ecosystem and instead creates a system seen as exploitative.

Launched in December 2024, Binance Alpha is a feature within the Binance Wallet designed to help users discover and engage with early-stage crypto projects before they become widely known. The program functions as a pre-listing token selection pool, highlighting projects deemed promising in areas like Web3, DeFi, and other crypto technologies.

Although it does not guarantee that featured projects will be listed on the Binance Exchange, the platform offers early access to users for potential projects and chances to earn rewards through mechanisms such as Token Generation Events (TGE) or Alpha Airdrops.

Points System
To participate in exclusive programs within the Binance Alpha ecosystem, users must accumulate what is called Alpha Points, a points system created to measure user participation and activity within the Binance Wallet and tokens involved in the Alpha program.

Alpha Points are calculated from two main components: Balance Points, which reflect the total value of assets held by users in the Binance Wallet and Binance Exchange, especially for tokens included in the Alpha program; and Volume Points, related to the volume of Alpha token purchases made via Binance Exchange and Wallet.

However, on May 13, 2025, Binance introduced a new point consumption mechanism. Under this update, collected Alpha Points expire within 15 days and are immediately spent when used to claim rewards or participate in events such as Token Generation Events (TGE).

This means users can no longer accumulate points long-term and must remain actively engaged regularly to maintain eligibility. This mechanism raised concerns, as many believe it places excessive pressure on users and encourages unsustainable participation patterns.

Crypto Community’s Disappointment
Over time, Binance Alpha has attracted negative attention for allegedly sacrificing early community contributors for short-term incentives that benefit Binance Alpha more.

In a post on X on Thursday (May 15, 2025), user @satyaXBT wrote an open letter to Binance and CEO Richard Teng expressing community concerns. He described Binance Alpha as resembling a “burn-to-earn” and “pay-to-play” system benefiting whales and new participants while early project supporters receive mere “crumbs.”

“Recently, the Binance Alpha campaign feels like a Monopoly game. Projects throw token allocations while users are forced to ‘work hard’ collecting Alpha Points and face unreasonable buy-sell fees. Sadly, OGs—early users who supported projects from day one—often only get ‘dust’ or nothing at all,” @satyaXBT wrote.

Meanwhile, user @AlwaysBeenChoze highlighted the long-term impact of this model on the community, calling the Alpha system a form of leaderboard capitalism where farming activity is rewarded more than genuine participation.

“Crypto should reward long-term conviction, not just snapshot optimization. If points are more valued than participation, people will stop building and become point farmers,” he wrote on X.

According to him, this system boosts wallet activity volume instantly but damages the project's community foundation by losing support from early backers.

Considered a Hidden Extortion Scheme

Among other criticisms, user @EarnByAbhi labeled Binance Alpha as a hidden extortion scheme. He claimed that despite users being encouraged to trade actively and hold funds, the rewards gained rarely match the costs and effort involved.

“Even if you swap $512 for a whole week, you only get 63 points. The recent requirements are 65 and 80 points, and I believe they’ll keep increasing them,” he said.

He concluded that if all these issues were absent, the system might still be considered. However, with all the red flags, he views Binance Alpha as nothing more than a “covert extraction scheme.”