Binance's tokens have recently staged a tragic drama of cutting leeks
Binance announced the launch of the Web3 security infrastructure project GoPlus Security (GPS) on the 4th. At the beginning of the token, the price of the coin soared to US$0.15, but soon plummeted 80% like a free fall within 72 hours, falling to US$0.05. Since then, it has continued to hit new lows, and has fallen to US$0.391 before press time.
Binance announced on the 7th that the GPS collapse was caused by a malicious sell-off by a market maker. The market maker maliciously sold about 70,000,000 GPS tokens, and the market maker made a profit of $5 million.
Binance bans market makers and earning compensation users
Binance released the market maker on the 9th by removing GPS and shell (these two coins are just as disgusting) and confiscated all profits, which shows that liquidity is drying up and liquidity is shifting from the original cex to the dex.
Why! Market maker and project parties work together to harvest new funds, but as a result, there is no money on the market, so market maker starts to harvest project parties. Before the market maker is launched, they often borrow a large amount of coins and set options. When the specified time is required, they will return the coins to Zhao. Now, when the market maker comes, they will smash all the borrowed coins, and then absorb funds at a low level and return them to the project parties, which is equivalent to borrowing coins to smash the market.
I think GPS and shell are just the beginning. Referring to the 21-year market-making crash, at that time, more than a dozen currencies were removed from the shelves every day, and the number in the future is only greater or less. You must choose a copycat with high liquidity, stay vigilant, and avoid chasing high-tech coins in order to better avoid risks.
#Binance optimizes currency listing mechanism
