Binance, the world’s largest cryptocurrency exchange, took action against a market maker for misconduct, seizing its assets.
Market Maker’s Misdeeds
The unnamed market maker, who provided liquidity for the GoPlus Security (GPS) and MyShell (SHELL) projects, was banned and had its funds confiscated. Binance stated that these funds will be used to compensate users affected by the market maker’s actions.
GoPlus Security Takes a Hit
The GPS token, GoPlus Security’s native cryptocurrency, plummeted over 71% in a week following its Binance listing. GoPlus Security denied rumors that a team member leaked the listing information beforehand, stating they weren’t informed until the public announcement.
MyShell Responds
MyShell, the AI project, also cut ties with the banned market maker. They announced that all associated Binance accounts were suspended and remaining assets would be transferred to new market makers. Furthermore, MyShell pledged to use all stablecoins held by the banned market maker to buy back SHELL tokens within 90 days, promising transparency by publishing relevant wallet addresses. The SHELL token also experienced a significant drop, falling more than 28% in the past week.
The Bottom Line
This incident highlights the risks involved in the cryptocurrency market and the importance of due diligence for investors. Binance’s actions underscore its commitment to protecting users from fraudulent activity.
