Binance Bans Market Maker for Trading Irregularities
Binance has banned a market maker associated with GoPlus Security and MyShell due to trading irregularities. the exchange announced this on March 9 via its official blog. Binance has terminated the market makerâs activities and seized its profits to compensate affected users. The compensation details will be shared later by the respective projects.
Market makers help maintain smooth trading by placing buy and sell orders. However, unethical practices like order book manipulation can distort prices. The banned market maker violated Binanceâs rules, including maintaining a fair order book and preventing disruptive trading. To protect users and market integrity,Binance took action.
After the declaration, GPS token prices fell over 14%, while SHELL recovered after a 4% drop. binance reaffirms its commitment to enforcing strict trading standards. this action is part of Binanceâs initiative to improve accountability and transparency.
Users can now vote on token listings and delistings through a new governance model introduced on March 7.Binance users holding at least 0.01 BNB can influence project listings. The exchange has also added features like pre-market trading and Launchpool farming incentives.
Changpeng Zhao, Binanceâs founder, noted on March 10 that too much money is focused on short-term gains. He emphasized the need for patience and strategic investment for long-term success in the crypto industry.
