Binance Takes Action Against Market Maker for GPS and SHELL
Binance recently made a significant move by clamping down on the market maker responsible for GoPlus Security (GPS) and MyShell (SHELL). The popular trading platform not only banned them from operating further on the exchange but also confiscated all profits generated from their trading activities.
Despite these steps, the identity of the market maker remains shrouded in mystery, sparking intense speculation within the cryptocurrency community.
In an official statement released on March 9, Binance revealed that after conducting an investigation, it found evidence of misconduct by the market maker associated with GPS and SHELL. Consequently, Binance terminated the market maker's activities on the exchange with immediate effect.
Additionally, Binance seized the profits to compensate affected users. The compensation plan details will be determined by the respective projects.
Binance emphasized the importance of market makers adhering to strict principles, which include maintaining adequate order sizes, ensuring a stable bid-ask spread, and refraining from market manipulation through high-frequency trading. Any breach of these principles would result in severe penalties, as warned by the exchange.
The lack of transparency surrounding the identity of the market maker has fueled speculation within the industry about potential candidates. Despite this, key industry players such as Animoca Brands and GSR have explicitly denied any involvement in market-making activities for GPS and SHELL.
The controversy has also led industry insiders to suggest connections to figures like May Liu, who has been implicated in past ventures related to crypto market making. While these claims are unverified, they hint at a broader trend of market-making firms operating under various guises in the crypto ecosystem.
Furthermore, data from Cryptorank reveals common VC investors between GPS and SHELL, raising questions about potential connections between the projects and their market maker.
As investigations into the matter continue, the industry awaits answers to the crucial question: Who is the market maker behind GPS and SHELL? The revelation could have far-reaching implications for transparency and regulatory compliance in the crypto market.
Market Performance
According to CoinGecko data, the price of GPS has seen a 7% decrease since the beginning of the week, currently trading at $0.03977. Conversely, the SHELL token price has increased by almost 10% in the same period, reaching $0.2973 at present.