Binance claps back against traders using bots to cheat the Alpha Points program
Binance has reprimanded on-chain traders who use bots to obtain Alpha Points illegally, warning that they would revoke Alpha Points of accounts caught violating the rule.
In a recent notice, the crypto exchange has taken a firm stand against traders who deploy bots in order to gain points in its Alpha rewards program. After detecting a number of bot-related activities, the team has decided to ban the use of trading bots on its platform for the sake of fairness.
“Any use of bots — including but not limited to scripts, automation tools, or other non-manual methods — will be treated as a violation,” wrote the crypto exchange in its violation notice.
In addition, the exchange declared that it has updated its risk control systems to better detect and handle the use of bots on the platform. If an account is found to have used trading bots to illegally obtain Alpha Points on the platform, then the exchange may revoke points and possibly impose more restrictions on the account if necessary.
Bots are automated software programs deployed by traders execute trades based on predefined strategies. They are able to perform trades by analyzing live market conditions autonomously, this means they can operate on a 24-hour basis without the user needing to lift a finger.
Binance’s Alpha Points program rewards users who interact with projects listed on the Binance Alpha platform, which selects emerging and popular projects in the space that could be eligible for an official listing. Users can earn Alpha Points by completing some tasks or reaching specific achievements can be exchanged for participation in an airdrop of choice or a token generation event.
In the case of Binance’s Alpha Points program, bots and scripts can be used to mimic legitimate activity at scale, allowing users to artificially inflate their engagement metrics without genuinely participating with new projects.
Moreover, bots can also be programmed to perform repetitive tasks to farm rewards and complete tasks meant for the user in order to earn more points.
The Binance Alpha rewards program was previously criticized by traders for monopolizing the meme coin market by profiting off of already trending projects, therefore violating decentralization. The mechanism was viewed as unfair because traders who had nothing to do with the project can reap rewards without really caring about the project’s sustainability.
