A new controversy in the crypto sphere centers on potential opaque practices by a market maker. Crypto analyst AB Kuai.Dong revealed a connection involving GoPlus, MyShell, and Chinese firm Whisper, capturing Binance co-founder Changpeng Zhao's (CZ) attention.
Who is Whisper?
The core of the controversy revolves around Whisper, linked to GoPlus (GPS) and MyShell (SHELL). Analyst AB Kuai.Dong claims Whisper operates to benefit selected entities at the crypto market's expense. The alleged connection to a Chinese firm raises concerns about conflicts of interest and transparency in fund flows.
Key Players and Their Roles
Focus is on May Liu, co-founder of Spark Digital Capital. Through Web3Port, an incubator, investments were made in startups with token shares acquired. Whisper allegedly served to profitably offload acquired tokens, creating a closed-loop system aimed at expedient exchange listings like Binance.
Binance’s Response and Crypto Community Impacts
Binance swiftly responded by suspending accounts linked to the market maker for GPS and SHELL, confiscating proceeds to compensate users. This incident highlights the need for transparency and rigorous monitoring in the crypto community, reminding of the importance of caution and due diligence when choosing projects to invest in.
These revelations remind us of the need for transparency in the crypto industry. Binance's rapid response serves as a positive example for other platforms, but continuous vigilance from the community is necessary to improve trust and fairness in market maker operations and listings.
