Binance Alpha’s $6.55B Framework: Removing Tokens That Don’t Meet Quality Metrics

Binance Alpha’s new token evaluation framework eliminates low-quality tokens, ensuring higher standards and reliable investments for users.

Yahya Raza
March 13, 2025
2:24 pm

Yahya Raza

Syed Yahya Raza Sherzai is a crypto news writer known for his in-depth analysis and timely reporting on blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). With a keen eye for emerging trends and regulatory developments, Sherzai has established himself as a trusted voice in the cryptocurrency space.

Binance Alpha introduces strict token review system for quality control.
Metrics include trading stability, team credibility, and regulatory compliance.
Tokens failing standards will be removed to protect user interests.

Binance announced on 12 March, that Alpha has implemented a new and extensive token evaluation system. This framework aims to eliminate irrelevant and low-quality tokens through the use of quantitative and qualitative parameters to create better standards for users. The quantitative metrics include issues like the volatility, depth, velocity, and the nature of token holders. On the qualitative side, there are competence and performance of project teams, regulatory conformity, and popularity of the project in the community.

As the announcement stated, any tokens that do not meet these established measures will be removed from Binance Alpha. This decision preserves the platform’s purity and allows users to invest in the most reliable and promising projects.

Binance Alpha’s Launch and Impact

Binance Alpha, part of Binance’s Wallet, was introduce in December 2024. It features early-cap and grounded projects including up to five tokens every day of the week. The Binance Alpha Spotlight coins have a market capitalization of $6.58 billion and as of the time of writing, the 24hr high was 6.9% with the trading volume being $1.35 billion, according to CoinGecko.

Binance have started modifying their listing procedure for the increased tokens to over 10 million in the last three years and still expanding. As of February 8th, 2025, the total numbers of coins listed on CoinMarketCap was at nearly 11 million.

Source: CoinMarketCap

As of January 26, Coinbase CEO Brian Armstrong highlighted the need to change the process of token listings. He point out that one million tokens are produce every week and stated that the mechanism shall switch from the allow list to the block list. Armstrong said that customer reviews and scanning the information on the tokens within the blockchain can help users.

We need to rethink our listing process at @coinbase given there are ~1m tokens a week being created now, and growing. High quality problem to have, but evaluating each one by one is no longer feasible. And regulators need to understand that applying for approval for each one is…
— Brian Armstrong (@brian_armstrong) January 26, 2025

The impact of the meme coin on their token is also attributable to the explosion of meme coins. From November 2024 to February 2025, Solana had more than 40,000 new meme coins. Activity in the meme coin has recently slowed down, and new tokens listed on platforms such as Pump.fun declined significantly by 80% until February 27th.

The new framework implemented by Binance is a positive approach that underlines its desire to uphold the highest standard and the trust of its users. Therefore, the market needs good and secure exchanges to continue supporting cryptocurrencies.