Binance has conducted an investigation into one of the market makers (MM) associated with GoPlus Security (GPS) and discovered that the MyShell (SHELL) project also utilized the same market maker. After identifying violations committed by this MM, Binance has implemented measures to protect users on the platform.
Binance’s Actions
- Termination of the Market Maker’s Activities on Binance: Binance has officially removed this MM from the platform and permanently banned all related market-making activities. This action aims to prevent behaviors that could harm market transparency and stability.
- Profit Seizure and Investor Compensation for GPS and SHELL: All profits earned by the MM through activities on Binance have been confiscated. These funds will be allocated to compensate investors who suffered losses due to the MM’s misconduct. Details of the compensation plan will be announced by the relevant projects in the near future.
Regulations for Market Makers on Binance
Binance emphasizes that all authorized market makers on its platform must strictly adhere to the following principles:
- Maintain a balanced order book to ensure market liquidity.
- Sustain sufficient order volume within the required market depth to avoid liquidity disruptions.
- Keep a reasonable and stable bid-ask spread to prevent abnormal price fluctuations that may impact user trading.
- Refrain from engaging in market manipulation practices, such as placing large orders and canceling them immediately (order spoofing) or using high-frequency trading to distort the market.
Commitment to User Protection
Binance will continue to closely monitor market-making activities and take strict actions against any MM that violates its policies. The platform’s goal is to maintain a fair, transparent, and secure trading ecosystem for all users.
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