Binance Freezes Market Maker Over GPS Token Dump Scandal

Unusual Market Behavior Triggers Binance’s Crackdown

Binance has frozen the account of a GoPlus Security (GPS) Market Maker following allegations of market manipulation and extreme price volatility, raising concerns over trading integrity. The exchange placed GPS on its Monitoring List on March 7, 2025, after identifying unusual trading activity tied to a massive sell-off of 70 million GPS tokens within 21 hours of the token’s listing. 

The Market Maker’s aggressive selling strategy, executed without placing any buy orders, caused GPS to lose 50% of its value within a day of its debut on Binance as part of the HODLer Airdrop program.

The continuous dumping of tokens immediately after GPS spot trading commenced on March 4 drew scrutiny, as market makers typically play a stabilizing role by providing both buy and sell liquidity. However, in this case, the Market Maker engaged solely in large-scale selling, amplifying downward pressure on the token’s price. 

This led to an estimated $5 million profit for the entity while retail investors suffered steep losses. The absence of buy orders further exacerbated price swings, intensifying concerns about manipulation. Binance’s response was swift, freezing the Market Maker’s account and launching a full investigation into the matter.

To safeguard traders, Binance applied its Monitoring Tag to GPS, signaling its heightened risk and volatility. Traders holding the token must now complete a risk awareness quiz every 90 days to continue trading. The exchange has also warned that if further irregularities are uncovered, GPS could face complete delisting from the platform. Binance’s decisive action underscores the growing emphasis on market oversight and investor protection within the crypto industry, reinforcing the exchange’s commitment to fair trading practices.

The GoPlus team has responded to the situation, denying any prior knowledge of the listing before Binance’s public announcement. The company also clarified that it transferred 500 million GPS tokens to Binance, with 300 million allocated for rewards and 200 million reserved for marketing purposes. 

As investigations continue, the case serves as a stark reminder of the risks associated with newly listed tokens and the importance of closely monitoring market maker activity to detect potential manipulation.

This article has been refined and enhanced by ChatGPT.