Binance has permanently banned a market maker involved in misconduct related to GoPlus Security (GPS) and MyShell (SHELL) tokens, following an investigation. The exchange confiscated the illicit profits generated from the market maker's noncompliant activities and plans to use these funds to compensate affected GPS and SHELL holders. Reportedly, the market maker caused a $5 million loss by failing to maintain balanced buy and sell orders, which is against Binance's market-making rules. This entity sold 70 million GPS tokens within a 21-hour period after the listing, securing profits through sales without corresponding buy orders. Additionally, it violated regulations concerning high-frequency order placements, impacting market stability. Following the news, GPS tokens saw a price drop of over 11%, while SHELL tokens briefly rose by 6.5%. In a related move, Binance announced new listing mechanisms allowing users to vote on which tokens should be listed or delisted, enhancing user participation in the process.

Source 🔗