GPS Token Manipulation: Binance Bans Market Maker, Refunds Users

GoPlus Security’s GPS token is still down by 12% even after a 25% jump following Binance’s listing and Airdrop announcement. Right after the listing and airdrop caused a bullish spike, a sharp reversal sent GPS plunging 60%, setting off controversy. The wild price swings raised red flags about market manipulation, leading Binance to launch an investigation.

The situation changed when Binance announced suspicious trading activity connected to GoPlus Security’s GPS token. Binance’s probe identified a market maker working with both GPS and MyShell (SHELL) tokens, accused of dumping large amounts to make a profit without buying back in.

Binance to Return Confiscated Funds to GPS Users

Because of these findings, Binance banned the market maker responsible and took their illicit profits, promising to compensate affected users. In an official blog post on March 9, the major exchange assured users that funds would be given back through a future compensation plan by the involved projects.

Industry figures shared their views. Bitget CEO Gracy Chen strongly criticized manipulative practices, saying, “Integrity is the base of a strong crypto market.”

Bitget CEO Slams Crypto Manipulation: “Integrity is Key!”

Chen also emphasized that Bitget has a “zero-tolerance policy” against this kind of behavior. Projects that offer free tokens to listing teams are instantly turned down. This shows a commitment to fairness and transparency.

“Without it, we risk building a market based on manipulation, quick wins, and short-term gains, ultimately damaging the industry’s long-term prospects. We should be building a space where fairness, transparency, and growth can thrive,” Chen wrote on X.

Chen further highlighted the importance of integrity in the crypto market. Chen warned that manipulation and short-term gains eventually harm the industry’s long-term growth. Instead, she promoted a market built on fairness, transparency, and sustainable growth.

Ethical Teams, Sustainable Growth Are Vital in Crypto

Chen’s response aligns with former Binance CEO CZ’s philosophy that “Big money is built slowly with stamina”. This is relevant in the current crypto world, where projects without solid foundations often struggle or fail.

CZ, in the March 9 post, emphasized the vital role of ethical teams in driving sustainable development, especially during challenging periods.

While Binance’s swift action reassures GPS traders for now, the episode shows the urgent need for more transparency and fairer trading practices in the crypto space.

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