ALPACA Token: Investment Opportunities Amidst the Delisting Turmoil of Centralized Exchanges

In the cryptocurrency market of 2025, the ALPACA token ($ALPACA) has attracted widespread attention due to the delisting announcement from centralized exchanges. As the native token of the Alpaca Finance platform, ALPACA is well-known in the decentralized finance (DeFi) space for its leveraged yield farming.

However, a certain centralized exchange recently announced that it will delist tokens such as ALPACA on May 2, 2025, leading to severe price fluctuations, which once surged over 800%, and then quickly fell back by 50%. This article will combine the latest developments to explore the background, investment potential, risk factors, and future prospects of the ALPACA token, providing investors with a comprehensive reference.

Introduction to ALPACA Token

The ALPACA token is the governance and incentive token of the Alpaca Finance platform, running on the Binance Smart Chain (BSC). Alpaca Finance is a decentralized leveraged yield farming protocol that allows users to amplify the yield of their staked assets through borrowing, while providing low-risk lending services. The ALPACA token plays multiple roles in the ecosystem:

• Governance: Holders can participate in significant decisions of the protocol, such as parameter adjustments and new feature development.
• Incentive: Users who stake ALPACA can earn additional token rewards through the "Grazing Range" event.
• Buyback and Burn: Alpaca Finance conducts weekly token buybacks and burns to reduce circulating supply and enhance long-term value. As of April 29, 2025, 34.98 million ALPACA tokens have been burned, accounting for 18.61% of the total supply.

Although ALPACA has a solid foundation in the DeFi space, the delisting event from centralized exchanges has made it the focus of the market, with price fluctuations triggering a wave of speculation.

Latest Updates on ALPACA Token

In April 2025, the ALPACA token became a hot topic in the crypto community due to a series of events. Here are the key developments:

Centralized Exchange Delisting Announcement: On April 24, a certain centralized exchange announced that it will delist the spot trading pairs of tokens such as ALPACA, PDA, VIB, and WING at 03:00 (UTC) on May 2. After the announcement, the price of ALPACA surged over 800% within 24 hours, triggering a massive short squeeze.

Severe Price Volatility: After a rise, ALPACA dropped over 50% within an hour on April 28, showing strong market sell-off pressure. Users on platform X pointed out that market makers may have borrowed more tokens to "dump" before delisting, which caused significant losses for retail investors.

Short Squeeze and Speculation: Social platforms show that over 75% of traders are shorting ALPACA, and the high negative funding fee (20% daily) has caused heavy losses for short sellers, while the market makers are profiting through fees and pump-and-dump schemes.

Continuous Buyback and Burn: Alpaca Finance officially announced the completion of the 214th weekly buyback and burn on April 29, burning 188,888 ALPACA (approximately $41,500). In the past two years, nearly 96% of the weeks have been in a deflationary state.

Community Reaction: Alpaca Finance officials stated that despite being delisted from centralized exchanges, ALPACA can still be traded on other platforms (such as WhiteBit), and urged users to pay attention to its ecological progress.

These dynamics highlight the high speculative nature of the ALPACA token during the delisting turmoil, while also reflecting the resilience of its ecosystem.

Investment Risk Warning

Delisting Impact: The delisting by centralized exchanges may lead to a decrease in ALPACA liquidity and undermine retail investor confidence.

Market Manipulation: Many users have pointed out that market makers may profit by borrowing tokens and dumping them, and retail investors should be wary of the operators.

High Volatility: The recent 50% drop indicates speculative risks, and short-term trading requires caution.

Regulatory and Market Risks: The regulatory uncertainty of DeFi projects and market competition may impact ALPACA's long-term performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments carry high risks, please make cautious decisions after thorough research.

Author: Rooick Z., Gate.io researcher *This article only represents the author's views and does not constitute any trading advice. Investment carries risks, and decisions should be made cautiously. *The content of this article is original and the copyright belongs to Gate.io. If reprinting is required, please indicate the author and source; otherwise, legal responsibility will be pursued.