This article analyzes the operational logic behind the Binance Alpha bull run from a market maker's perspective. In the current market environment, an obscure project can often achieve multifold gains within a short period. The core driver has shifted from "narrative-driven" to "capital-driven."

Division of Labor: Alpha vs. Prep

The Alpha platform provides a natural attention pool and an initial user base, serving as the critical stage for market makers to accumulate and build positions. Prep (Perpetual Contracts), on the other hand, is the core tool for market makers to increase Open Interest (OI), attract traffic, and complete distribution.

Market Maker Profit Strategy

Market makers actively absorb selling pressure within the brief window after Alpha listing to control the spot筹码 (chips/supply). After Prep launches, they create hype by pushing up OI and capitalize on abnormal funding rate spikes for spot-futures arbitrage, generating stable cash flow. Finally, when OI is high and long positions are overcrowded, they orchestrate a sell-off, completing spot distribution and profiting from their short positions.

Retail Investor Reference Signals

Projects exhibiting high concentration of holdings and significant community FUD might be worth attention. A simultaneous Alpha + Prep listing on the first day often indicates sufficient liquidity. Attempting to estimate the market maker's profits during pumps and pullbacks can help understand their logic. If the Alpha opening price seems too high, waiting for a more suitable entry point might be prudent.

In essence, this is a structured game dominated by market makers. How far the price action goes depends not on the story, but on the depth of capital and the precision of the market manipulation节奏 (rhythm/pace).

---

Summary

Author: @0xBenniee

Amid the current market environment where liquidity from the interest rate cutting cycle is not yet abundant, the Binance Alpha bull run continues to play out: obscure projects can often silently rally several hundred percent within a short time.

This article will discuss the market making strategy for initial Alpha + Prep listings from the market maker's perspective, including their internal monologue, aiming to "dance with the market maker."

Binance Alpha acts as a natural liquidity pool. On the listing day, it concentrates immense attention and retail investor resources, also attracting a group of native Alpha users who may choose to sell or buy – every "Alpha worker" is placing bets from their own viewpoint.

However, from the project team and market maker's perspective, the thinking is more direct: "Having already paid a 1-2% token cost to list on Alpha, plus the additional expense to enable Prep, paying these 'protection fees' makes the probability of abandoning the project later relatively low."

Thus, we witness the subsequent "Alpha on-chain bull run." In reality, relying solely on the Alpha spot market makes large-scale distribution difficult. Market makers must utilize Prep, continuously increasing OI to attract more retail investors, turning this trade into a "casino table."

The logic for projects nowadays has shifted from the past "narrative-driven" model to being thoroughly capital-driven: whoever has thicker筹码 (chips/capital) can create a more aggressive price move; as long as enough gamblers (speculators) enter the market, market makers can continuously create volatility and extract profits.

The summary is as follows:

* Alpha provides the natural attention pool and initial user base.

* Prep is the core tool for market makers to increase OI and attract traffic.

For market makers, the key logic on the listing day is:

* Alpha → Accumulation + Position Building

* Prep → Pumping + Distribution

Taking a new token listing as an example, let's see how market makers profit via Alpha+Prep

The Alpha listing time is 8:00 (UTC), and the Prep listing is at 10:30, leaving market makers only a two-and-a-half-hour window to acquire tokens. This period is essentially a stage where market makers compete with retail investors for筹码 (supply). Active MMs will aggressively absorb selling pressure. If a significant portion of the tokens is taken by free-rider retail investors, the subsequent pumping cost for market makers increases.

(Based on market observations, the main market making force on Alpha is predominantly active MMs. Industry speculation suggests their allocated capital typically ranges in the millions of USD, with relatively sufficient liquidity provision on the spot side.)

After Prep launches, market makers push up OI to attract more retail investors, making the game a "increasingly crowded casino table." The core role of Prep is not just to provide a hedging tool, but to amplify market attention and trading participation.

Simultaneously, market makers often coordinate with relevant KOL promotions, positive news, or exchange listing marketing PR to further generate topics and heat, attracting more attention. Whether going long or short, participants essentially contribute liquidity to the market, which also provides market makers with greater maneuvering space and more ample profit sources.

As shown in the chart, OI is quickly pushed up after Prep launches and remains stable at high levels. In the early stages, market makers usually avoid drastic pumps or violent sell-offs for distribution. The reason is that selling too early might mean they cannot repurchase筹码 at the same or lower cost,反而 increasing their overall pumping cost. The core goal is to transfer the筹码 to retail investors at the highest possible price, ensuring successful distribution.

During the pump, the funding rate often provides a key reference. By observing changes in the funding rate, market makers can gauge if market sentiment is overheating and fine-tune their tactics. For instance, when the funding rate spikes abnormally, market makers can use spot-futures hedging or short-term funding rate arbitrage to reduce holding costs, further enhancing overall returns.

With the spot supply largely in their control, as long as market makers refrain from selling, the funding rate market becomes a tool. During the pump phase from 9/12–9/15, OI continued to rise, and the funding rate spiked multiple times:

* Peak: 0.3–0.4% / 4h (annualized approx. 270%–360%)

* Average: 0.1–0.2% / 4h (annualized approx. 90%–180%)

This means that by establishing hedge short positions in the futures market while maintaining their spot longs, market makers could continuously collect the funding rate, forming a stable arbitrage cash flow as an important means of cost optimization.

On 9/16, when OI remained high and long positions were severely overcrowded, the market maker chose to execute a significant sell-off, distributing spot holdings while profiting from their short positions:

* Price dropped from 0.058 → 0.035, a decline of approximately 40%.

* Market maker's cost range was 0.015–0.02, with an estimated distribution average price of 0.045–0.05.

* Estimated profit margin per token: approximately +150%–200%.

(Under ideal conditions, profits from on-chain liquidity pools are not included in this overall calculation. Specific strategies vary among different market makers.)

Key Points for 'Dancing with the Market Maker'

* In the early stages, if a project shows signs of high concentration of holdings and significant community FUD, it often warrants closer attention. Projects with complex tokenomics (like "Grand Slam" types) are inherently harder to analyze clearly and require cautious participation.

* If a project lists simultaneously on Alpha+Prep on the first day, it usually indicates sufficient liquidity, and price volatility will likely be more intense.

* Trying to estimate the market maker's profit situation during each pump and pullback can help understand their manipulation logic.

* At Alpha launch, pay attention to the pricing on PancakeSwap V3. If the opening price seems too high, waiting for a more suitable entry rhythm might be safer.

Conclusion

The initial listing model of Alpha + PREP is reshaping the current market landscape. Superficially, it appears to be a narrative-driven bull run for new tokens. In reality, however, it更像 is a structured game directed by market makers. Alpha provides the筹码沉淀 (token accumulation/sedimentation) and initial traffic. PREP amplifies liquidity and volatility. OI and the funding rate become key tools for market maker manipulation. Retail investors might capture short-term opportunities, but more importantly, they need to understand the underlying logic: how far the price action goes depends not on how compelling the story is, but on the depth of capital and the precision of the manipulation节奏 (rhythm/pace).

This article analyzes the operational logic behind the Binance Alpha bull run from a market maker's perspective. In the current market environment, an obscure project can often achieve multifold gains within a short period. The core driver has shifted from "narrative-driven" to "capital-driven."

Division of Labor: Alpha vs. Prep

The Alpha platform provides a natural attention pool and an initial user base, serving as the critical stage for market makers to accumulate and build positions. Prep (Perpetual Contracts), on the other hand, is the core tool for market makers to increase Open Interest (OI), attract traffic, and complete distribution.

Market Maker Profit Strategy

Market makers actively absorb selling pressure within the brief window after Alpha listing to control the spot筹码 (chips/supply). After Prep launches, they create hype by pushing up OI and capitalize on abnormal funding rate spikes for spot-futures arbitrage, generating stable cash flow. Finally, when OI is high and long positions are overcrowded, they orchestrate a sell-off, completing spot distribution and profiting from their short positions.

Retail Investor Reference Signals

Projects exhibiting high concentration of holdings and significant community FUD might be worth attention. A simultaneous Alpha + Prep listing on the first day often indicates sufficient liquidity. Attempting to estimate the market maker's profits during pumps and pullbacks can help understand their logic. If the Alpha opening price seems too high, waiting for a more suitable entry point might be prudent.

In essence, this is a structured game dominated by market makers. How far the price action goes depends not on the story, but on the depth of capital and the precision of the market manipulation节奏 (rhythm/pace).

---

Summary

Author: @0xBenniee

Amid the current market environment where liquidity from the interest rate cutting cycle is not yet abundant, the Binance Alpha bull run continues to play out: obscure projects can often silently rally several hundred percent within a short time.

This article will discuss the market making strategy for initial Alpha + Prep listings from the market maker's perspective, including their internal monologue, aiming to "dance with the market maker."

Binance Alpha acts as a natural liquidity pool. On the listing day, it concentrates immense attention and retail investor resources, also attracting a group of native Alpha users who may choose to sell or buy – every "Alpha worker" is placing bets from their own viewpoint.

However, from the project team and market maker's perspective, the thinking is more direct: "Having already paid a 1-2% token cost to list on Alpha, plus the additional expense to enable Prep, paying these 'protection fees' makes the probability of abandoning the project later relatively low."

Thus, we witness the subsequent "Alpha on-chain bull run." In reality, relying solely on the Alpha spot market makes large-scale distribution difficult. Market makers must utilize Prep, continuously increasing OI to attract more retail investors, turning this trade into a "casino table."

The logic for projects nowadays has shifted from the past "narrative-driven" model to being thoroughly capital-driven: whoever has thicker筹码 (chips/capital) can create a more aggressive price move; as long as enough gamblers (speculators) enter the market, market makers can continuously create volatility and extract profits.

The summary is as follows:

* Alpha provides the natural attention pool and initial user base.

* Prep is the core tool for market makers to increase OI and attract traffic.

For market makers, the key logic on the listing day is:

* Alpha → Accumulation + Position Building

* Prep → Pumping + Distribution

Taking a new token listing as an example, let's see how market makers profit via Alpha+Prep

The Alpha listing time is 8:00 (UTC), and the Prep listing is at 10:30, leaving market makers only a two-and-a-half-hour window to acquire tokens. This period is essentially a stage where market makers compete with retail investors for筹码 (supply). Active MMs will aggressively absorb selling pressure. If a significant portion of the tokens is taken by free-rider retail investors, the subsequent pumping cost for market makers increases.

(Based on market observations, the main market making force on Alpha is predominantly active MMs. Industry speculation suggests their allocated capital typically ranges in the millions of USD, with relatively sufficient liquidity provision on the spot side.)

After Prep launches, market makers push up OI to attract more retail investors, making the game a "increasingly crowded casino table." The core role of Prep is not just to provide a hedging tool, but to amplify market attention and trading participation.

Simultaneously, market makers often coordinate with relevant KOL promotions, positive news, or exchange listing marketing PR to further generate topics and heat, attracting more attention. Whether going long or short, participants essentially contribute liquidity to the market, which also provides market makers with greater maneuvering space and more ample profit sources.

As shown in the chart, OI is quickly pushed up after Prep launches and remains stable at high levels. In the early stages, market makers usually avoid drastic pumps or violent sell-offs for distribution. The reason is that selling too early might mean they cannot repurchase筹码 at the same or lower cost,反而 increasing their overall pumping cost. The core goal is to transfer the筹码 to retail investors at the highest possible price, ensuring successful distribution.

During the pump, the funding rate often provides a key reference. By observing changes in the funding rate, market makers can gauge if market sentiment is overheating and fine-tune their tactics. For instance, when the funding rate spikes abnormally, market makers can use spot-futures hedging or short-term funding rate arbitrage to reduce holding costs, further enhancing overall returns.

With the spot supply largely in their control, as long as market makers refrain from selling, the funding rate market becomes a tool. During the pump phase from 9/12–9/15, OI continued to rise, and the funding rate spiked multiple times:

* Peak: 0.3–0.4% / 4h (annualized approx. 270%–360%)

* Average: 0.1–0.2% / 4h (annualized approx. 90%–180%)

This means that by establishing hedge short positions in the futures market while maintaining their spot longs, market makers could continuously collect the funding rate, forming a stable arbitrage cash flow as an important means of cost optimization.

On 9/16, when OI remained high and long positions were severely overcrowded, the market maker chose to execute a significant sell-off, distributing spot holdings while profiting from their short positions:

* Price dropped from 0.058 → 0.035, a decline of approximately 40%.

* Market maker's cost range was 0.015–0.02, with an estimated distribution average price of 0.045–0.05.

* Estimated profit margin per token: approximately +150%–200%.

(Under ideal conditions, profits from on-chain liquidity pools are not included in this overall calculation. Specific strategies vary among different market makers.)

Key Points for 'Dancing with the Market Maker'

* In the early stages, if a project shows signs of high concentration of holdings and significant community FUD, it often warrants closer attention. Projects with complex tokenomics (like "Grand Slam" types) are inherently harder to analyze clearly and require cautious participation.

* If a project lists simultaneously on Alpha+Prep on the first day, it usually indicates sufficient liquidity, and price volatility will likely be more intense.

* Trying to estimate the market maker's profit situation during each pump and pullback can help understand their manipulation logic.

* At Alpha launch, pay attention to the pricing on PancakeSwap V3. If the opening price seems too high, waiting for a more suitable entry rhythm might be safer.

Conclusion

The initial listing model of Alpha + PREP is reshaping the current market landscape. Superficially, it appears to be a narrative-driven bull run for new tokens. In reality, however, it更像 is a structured game directed by market makers. Alpha provides the筹码沉淀 (token accumulation/sedimentation) and initial traffic. PREP amplifies liquidity and volatility. OI and the funding rate become key tools for market maker manipulation. Retail investors might capture short-term opportunities, but more importantly, they need to understand the underlying logic: how far the price action goes depends not on how compelling the story is, but on the depth of capital and the precision of the manipulation节奏 (rhythm/pace).