- Binance takes action against market maker in GPS and SHELL projects.
- 70 million GPS tokens sold, causing a significant price drop on Binance.
- Binance imposes risk quiz requirement for GPS traders every 90 days.
Binance has taken immediate action against a market maker linked to GoPlus Security (GPS) and MyShell (SHELL) projects. The exchange found irregularities in the market-making activities of the entity involved. Binance has removed the market maker from the platform and prohibited further market-making actions for these projects.
Binance removes market maker, compensates users
The investigation revealed that the market maker had been involved in questionable trading practices. Binance identified that the same entity had performed market-making for both GPS and SHELL projects. The misconduct included market manipulation by placing no buy orders while aggressively selling GPS tokens, resulting in a significant price drop.
Consequently, Binance has confiscated the proceeds from the market maker. These funds will be used to compensate users affected by the irregularities in the GPS and SHELL markets. Binance will share the detailed compensation plan once it is finalized by the respective projects.
Moreover, Binance has placed GoPlus Security under its Monitoring Tag. The Monitoring Tag indicates increased volatility and risk for the token, following the market irregularities. Binance flagged GPS after observing that the market maker offloaded 70 million GPS tokens between March 4 and March 5, 2025, with no buy orders.
This activity caused a sharp decline in the price of GPS tokens, raising concerns over potential market manipulation. The market maker’s Binance account has been temporarily suspended as part of an ongoing investigation. Users trading GPS are now required to pass a risk quiz every 90 days to continue trading the token on both Binance Spot and Binance Margin.
Binance Enhances Safety of Traders
Binance emphasized that all authorized market makers on its platform must adhere to strict guidelines. These include placing orders for both bids and asks, maintaining sufficient order sizes, and ensuring a stable spread for market activity. Failure to comply with these rules can lead to further actions against non-compliant market makers.
The exchange reaffirmed its commitment to maintain a safe and secure trading environment. Binance aims to protect users from malicious or manipulative practices. The actions taken against the market maker are part of Binance’s effort to promote transparency and long-term growth within the crypto ecosystem.
Binance also reminded users that tokens with the Monitoring Tag are subject to increased scrutiny. Tokens placed under this tag may be delisted if they fail to meet the platform’s listing criteria. The exchange continues to monitor market conditions closely and act swiftly to prevent market disruptions.