Binance has announced the suspension of a market maker linked to GoPlus Security and MyShell due to detected trading irregularities, and has confiscated its proceeds to compensate affected users.
Binance Announcement
On March 9, Binance announced on its official blog the termination of market-making activities by the entity linked to GoPlus Security and MyShell due to detected trading violations. The company stated its action to confiscate proceeds for the purpose of compensating users, with the details of the compensation plan to be announced later.
Market Impact and User Reaction
The announcement triggered investor uncertainty, leading to a drop of over 14% in GPS, while SHELL has since recovered after a 4% decline. Binance reaffirmed its commitment to stringent adherence to trading standards by all market participants and to taking appropriate actions against violators.
Steps Towards Enhanced Control and Transparency
This action is part of Binance's larger initiative to improve accountability and transparency. Thanks to a new governance model, users can now vote on token listings and delistings. Binance also added several listing features, including pre-market trading for certain tokens and Launchpool farming incentives. The founder of Binance, Changpeng Zhao, emphasized the importance of patience and strategic investment for long-term success in the cryptocurrency industry.
The measures taken by Binance aim to enhance accountability and transparency, as well as protect user interests and market integrity.
