Svmuu News Binance has issued a risk warning for crypto market makers and provided guidelines for project teams and users. It pointed out that market making activities can enhance liquidity and support orderly trading, but not all market making arrangements align with long-term market integrity. Users and project teams should be wary of actions such as sales that conflict with token distribution plans, as these may undermine price stability, community trust, and long-term sustainability. Project teams should carefully select and manage market makers by conducting thorough due diligence, establishing contracts with clear compliance and responsibility stipulations, and continuously monitoring market maker behavior to protect project stability and community interests.
Binance stated that users should pay attention to market conditions when making trading decisions, especially for newly listed or highly volatile assets, and be alert to potential signals of unnatural trading behavior. Additionally, it requires token issuers to promptly disclose market maker information to the platform; prohibits profit-sharing and guaranteed return models; and mandates that token lending agreements clearly specify token usage, among other requirements. Binance stated it will take swift and decisive action against any violations, including blacklisting non-compliant market makers.
Binance Issues Risk Warning for Crypto Market Makers and Provides Guidelines for Project Teams and Users
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