Binance Warns Retail Traders About “Copyright” Tokens

Warning amid new wave of speculation

As speculative tokens gain traction across the cryptocurrency market, newly appointed Binance co-CEO Yi He has issued a stark warning to retail traders. She warns of a rapidly growing class of assets designed to “cash in” on Binance’s reputation—tokens that mimic the exchange’s branding, mimic the style of its ticker, or are tied to any Binance-related narrative to imply legitimacy.

Her statement comes at a crucial time, as the cryptocurrency market enters a new phase of risk-taking, particularly around meme coins and AI-related assets. In this context, her warning reflects deeper concerns about market integrity, user protection and the reputation of the world's largest exchange.

How does Token take advantage of brand association?

While Yi He did not name specific projects, the market has seen a consistent pattern of how opportunistic tokens try to leverage Binance's influence:

Many micro-cap tokens use names like Binance or BNB—sometimes adding simple suffixes like "AI," "2.0," or "Chain"—to create the illusion of association. Even subtle visual design choices, like color palettes or UI layouts, are used to create familiarity for users.

Other projects launched shortly after Binance’s announcement, positioning themselves as part of a broader ecosystem shift. A new Binance product, leadership change, or chain upgrade often creates a wave of opportunistic tokens, with marketing language hinting at future partnerships or listings.

These tokens rely heavily on behavioral biases of new traders: authority bias, FOMO, and unit price illusion. By appearing next to a trusted brand, they reduce user wariness while maximizing initial hype and liquidity flow.

Combined, these strategies allow creators to generate quick traction with minimal content – ​​turning the Binance brand into a short-term speculative asset for their own profit.

Why retail often runs out of liquidity

Behind the cosmetic and marketing facade lies a deeper issue of a mechanism by which these tokens are structurally biased against retail traders.

Most piggyback tokens launch with insider-dominated allocations and shallow liquidity pools. This design allows small buy orders to quickly push prices up, creating the illusion of momentum. When the hype peaks, insiders dump their positions to retail participants at a significant premium.

With no real utility or long-term roadmap, the price is completely dependent on social media buzz. When market sentiment changes—or when the illusion of Binance’s association is questioned—the drop is immediate and severe.

These assets follow a predictable life cycle: rapid growth → surge in liquidity → insider exit → crash. Retail buyers, lured in by the mania, are structurally positioned to absorb the losses.

Yi He's warning is therefore not just about misinformation, but also about the risks of market microstructure, the disproportionate impact on inexperienced users.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.