Story Highlights
- Binance bans market maker for misconduct in GPS and SHELL projects.
- Market maker permanently prohibited from trading on Binance.
- Users await compensation details from GPS and SHELL projects.
Binance has taken strict action against a market maker involved in the GoPlus Security (GPS) and MyShell (SHELL) projects. Following their inquiry Binance confirmed the market maker had broken company policy. The same entity ended up taking responsibility for market-making operations within the SHELL project following the initial discovery.
Binance has taken action to eliminate the market maker from operating on its platform. The market-maker has been put under permanent ban to perform any market functions through Binance. Binance took complete control of all earnings obtained from these projects by the market maker. The obtained funds will serve as compensation for users of GPS and SHELL projects who experienced losses. The project teams are responsible for revealing their compensation schedules at a later time.
Binance Enforces Strict Rules for Market Maker
The trading fairness on Binance relies on established parameters that market makers authorized to use must adhere to. These entities need to place orders to buy and sell simultaneously while keeping their orders large enough and their price levels stable, respectively. The market makers must sustain their orders throughout a suitable timeframe and prevent making too many cancellations, which can cause market instability.
Binance will initiate strict penalties when any market maker breaks the established rules. The platform maintains the right to ban users from Binance and freeze their platform assets while executing needed protective measures for users. Binance devotes itself to building a trading domain that delivers total transparency and fairness to its user community.
Numerous traders endorse this market maker ban as an advancement in maintaining market stability. Strong oversight measures, according to these traders prevent market manipulation from recurring in the future. Users who were affected are currently awaiting information regarding the compensation they will receive.
Binance has strengthened its dedication to trader security and sustainable marketplace practices by taking such direct action. The company actively tracks all market activities for fairness maintenance purposes and will make additional steps if required to ensure transparency remains intact.
