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Binance releases important risk warnings and user safety education about Binance Alpha

Online reports that Binance issued an important risk warning about Binance Alpha, saying that it has recently noticed some suspicious activities aimed at profiting from users who provide liquidity to DEX. Common risk signals include abnormally high yields, rapid price fluctuations, or excessive promotion of trading activity and incentives. A common strategy is to attract users to provide liquidity through transaction rebates or similar incentives. These mechanisms can simulate positive market conditions and active trading, but often conceal significant structural risks and potential sudden price reversals. For the above reasons, users are strongly advised to pay attention to the following matters: 1. For liquidity pool (LP) providers: Before adding liquidity, please carefully evaluate the market value, fully diluted valuation (FDV) and price fluctuations of the project. Choose your liquidity range wisely because of the risks of providing liquidity, including unpredictable losses. In particular, we must be wary of abnormally high LP yields in low-liquidity environments. 2. For traders: Understand the liquidity and holder distribution of tokens before trading. Be highly vigilant against tokens that show a high concentration of positions or a sudden and unobvious increase in prices. Focus on liquidity changes, token distribution and trading patterns. Stay well-informed and make decisions based on research rather than hype. 3. Risk warning banners: For high-risk projects, Binance will display risk warning banners (for example: BR, KOGE, QUQ) on the token trading page. Please be sure to pay attention to such risk warnings before trading.

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