
老八只白嫖|Mar 09, 2025 14:39
Binance has punished the malicious market making of GPS and SHELL, as well as taken remedial measures for retail investors. Does this give hope to these two currencies?
This is not a good news, it's just a measure taken by CEX to restore its reputation. Retail investors should not be too naive!
Firstly, the main business of market makers is to earn market spreads, with the main purpose of maintaining market liquidity. They are also traders in the market, and no trader is not afraid of unilateral market trends. Especially when everyone loses confidence in a currency, consensus collapses, and market makers will constantly clear their chips
Essentially, the lack of buying motivation is not enough to generate more profits. The sentiment in the token market is more bearish than bullish. When only you are buying in a project and others are selling, will you continue to play? Market makers will naturally shrink their funds in advance
This indicates that the purchasing power of the first exchange in the universe, Binance, has begun to decline in the current market situation, which is one of the most obvious bear market signals
Secondly, even if Binance punishes market makers who have committed wrongdoing, there is a high probability that there will not be new market makers to replace them in the short term. Once negative emotions towards the project token arise, the difficulty for retail investors to rebuild consensus will increase. In addition, Binance's punishment mechanism makes it even more difficult for new market makers to accept orders
Finally, the current market has entered a bear market stage, and with extremely low market liquidity, no one is willing to bet on the lowest limit of project consensus. If there is no clear signal of bottom consolidation after experiencing a decline, it is easy to be caught halfway up!
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