Binance Takes Action Against Market Maker

Binance has announced decisive action against a market maker involved in allegations of irregularities related to GoPlus Security (GPS) and MyShell (SHELL).

Following an internal investigation, Binance discovered that the same market maker responsible for GPS activities was also involved in MyShell’s market making. In response, Binance removed this entity from its platform and banned it from any further market making activities.

Measures Implemented by Binance

To protect users and maintain market integrity, Binance has implemented the following measures:

• Market Maker Delisted: The designated market maker has been removed from the system and is prohibited from any market making on Binance.
• Revenue Forfeiture: Revenue tied to the market maker’s activities has been forfeited, and these funds will be used to compensate users affected by the irregularities in the GPS and SHELL markets. Specific compensation details will be announced later by the respective projects.

Binance emphasized the importance of adhering to market making principles, which include:

• Placing both buy and sell orders for balanced market activity.
• Maintaining adequate order size within the established depth levels.
• Keeping a stable spread to support market efficiency.
• Preventing disruptions caused by excessive high-frequency order placements and cancellations.

This is not investment advice.