Binance has imposed a ban on a market maker associated with GoPlus Security and MyShell following the identification of trading discrepancies.
In a March 9 announcement, Binance revealed that it has terminated the market maker’s activities and has confiscated its earnings to provide compensation to impacted users. Details regarding the compensation plan will be disclosed shortly by the respective projects involved.
Market makers play a crucial role in the trading ecosystem by consistently placing buy and sell orders to maintain liquidity and minimize price volatility. However, unethical practices such as order book manipulation can disrupt market integrity and create unfair advantages for market makers.
The implicated market maker violated Binance’s regulations, which require maintaining a fair order book with balanced buy and sell orders, ensuring sufficient liquidity, and preventing disruptive trading tactics. In a bid to safeguard user interests and uphold market integrity, Binance has terminated its association with the entity.
Following this announcement, investor concerns led to a 14% drop in GPS’s value, although SHELL has since bounced back from an earlier decline of 4%. Binance has reiterated its dedication to strict compliance with trading standards across all market participants and its commitment to taking necessary actions against violators.
This move is part of Binance’s broader effort to enhance accountability and transparency within the market. On March 7, the exchange launched a new governance model allowing users to vote on token listings and delistings, provided they hold a minimum of 0.01 BNB, giving them the power to influence project decisions.
Additionally, Binance has introduced several new listing features, including pre-market trading for select tokens, direct spot listings, and Launchpool farming incentives. The exchange clarified that it does not charge listing fees and will communicate when projects allocate budget for marketing their listings. These funds will subsequently be returned to users in the form of airdrops.
Addressing the current landscape of the cryptocurrency sector, Binance founder Changpeng Zhao emphasized on March 10 the tendency of too much capital being funneled into short-term gains rather than supporting ethical teams focused on long-term growth. He urged investors to practice patience and to prioritize strategic investments for sustainable success in the cryptocurrency space.
