Binance has taken decisive action against the market maker for GoPlus Security (GPS) and MyShell (SHELL). The trading platform banned them from further activities on the exchange and seized all profits from their operations.
However, the identity of the market maker remains a mystery, sparking widespread speculation within the cryptocurrency community.
Binance Cracks Down on Market Irregularities
In an official statement on March 9, Binance disclosed that its investigation uncovered misconduct by a market maker associated with GPS and SHELL. As a result, the exchange announced the immediate termination of the market maker’s activities on Binance.
Binance also confiscated the proceeds to compensate affected users. The respective projects will determine the details of the compensation plan.
Binance reiterated that all authorized market makers must adhere to strict principles. These include maintaining sufficient order size, ensuring a stable bid-ask spread, and avoiding market manipulation through high-frequency trading. The exchange warned that any violations would lead to severe penalties.
“Any project-authorized market makers who do not comply with or breach such principles and rules, Binance will take further actions against such market makers to best protect our users,” the exchange articulated.
The lack of transparency regarding the market maker’s identity has led to speculation about which entity might be responsible. However, some major industry players have explicitly denied any involvement. Animoca Brands, a well-known investor in blockchain projects, categorically denied being the market maker for GPS and SHELL.
“In response to queries, Animoca Brands wishes to clarify it is not involved in market-making activities for GoPlus Security ($GPS) and/or MyShell ($SHELL),” the company stated on X (Twitter).
Similarly, GSR, a leading crypto market-making firm, issued a statement distancing itself from the controversy. It also indicated that while it is an investor and partner of GoPlus, it does not engage in market-making activities for the project.
“We can confirm that we are not the market maker referenced in Binance’s statement regarding GoPlus Security and remain committed to upholding the highest standards of integrity and transparency with our clients,” the firm articulated.
Allegations and Historical Connections
Amid the speculation, industry insider AB Kuai Dong has suggested a potential link to May Liu, also known as Piaopiao, and her past ventures in crypto market making. According to Kuai Dong, Liu was the founder of Spark Digital Capital in Shanghai, a firm allegedly engaged in market outsourcing under venture capital (VC) guise.
As VC standards tightened in 2021-2022, Liu reportedly transitioned to incubating Web3 projects through Web3Port. She also ran a market-making firm called Whisper. This operation, Kuai Dong alleges, provided liquidity services and facilitated project listings on the Binance exchange.
“Whisper has become a specially packaged project in the industry and has been listed on Binance’s brokerage assembly line. Binance’s retail investors have also become long-term ATMs. The so-called one-year quick pass through Binance, to some extent, they did it, and did it for a long time,” he alleged.
While Kuai Dong’s claims remain unverified, they suggest a broader trend of market-making firms operating under multiple guises within the crypto ecosystem.
Another layer of intrigue comes from Cryptorank data, which shows GPS and SHELL share several common VC investors. YZi Labs (formerly Binance Labs), OKX Ventures, and HashKey Capital are among them.
This overlap has fueled speculation about potential behind-the-scenes connections between the projects and their market maker.
As investigations continue, the key question remains: Who is the market maker behind GPS and SHELL? The answer may have broader implications for transparency and regulatory compliance in the crypto market.
Data on CoinGecko shows that the GPS price has decreased by over 7% since Monday’s session opened, trading for $0.03977 as of this writing. Conversely, the price of the SHELL token has been up by almost 10% in the same timeframe and was selling for $0.2973 at press time.
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