Binance Suspends Market Maker indefinitely
Binance released an official report detailing actions against a market maker involved in irregular trading activities for GoPlus Security and MyShell. The world’s largest cryptocurrency exchange by trading volume found misconduct by the market maker that provided services for both projects.
Binance has consequently offboarded the market maker and permanently barred them from further market-making activities on the platform.
Additionally, the platform has taken the market maker’s profits and will use them to reimburse affected customers.
The individual projects will ultimately provide comprehensive compensation plans. Binance underlined that all authorized market makers must adhere to stringent regulations.
This entails maintaining sufficient order volumes, avoiding manipulative tactics like high-frequency trading, and maintaining constant bid-ask spreads. Additionally, the website warned that breaking these guidelines would have dire repercussions.
Some well-known brands in the digital asset sector have flatly denied any affiliation on the issue. Hong Kong-based game software developer Animoca Brands, a major force in the Web3 space, unequivocally stated that they are not in charge of creating the market for SHELL and GPS.
GSR, a well-known cryptocurrency market maker, addressed the matter and clarified that it is not the market maker responsible for the anomalies that Binance had discovered. Although GSR acknowledged its role as GoPlus Security’s partner and investor, it stated it did not offer market-making services for the project.
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