GoPlus Security Investigates 60% GPS Token Plunge After Binance Listing

Highlights:

• GoPlus Security’s GPS token dropped over 60% after an unexpected Binance listing on March 4.
• Binance flagged unusual market-maker activity and temporarily suspended a key market-making account.
• GoPlus Security formed a team to investigate the price crash and denied insider trading allegations.

GoPlus Security is currently investigating why its GPS token lost a significant portion of its value following a surprise listing on Binance. The token dropped more than 60% of its value in a day, thus alarming investors. Binance later detected some suspicious trades by market makers and paused the key market-making accounts.

GoPlus Security Responds with Investigation

In their response, GoPlus Security informed investors that it was actively cooperating with Binance to determine the primary reason for the price decline. The firm said that 500 million GPS tokens were transferred to Binance on the day of listing. Out of this, 300 million went into Binance’s BNB HODLer program, while 200 million was set aside for marketing.

This sudden listing posed some concerns about the level of transparency of the exchanges. Usually, projects are informed beforehand regarding their listings to enable them to make the necessary preparations. However, GoPlus Security said it only found out about the listing once Binance publicly announced it.

Announcement for Rumor Clarification

Firstly, GoPlus has established a dedicated investigation team to conduct a comprehensive inquiry into the unusual price fluctuations. Binance have also provided with additional support to investigate the cause of the incident. pic.twitter.com/sB3yEZFUfq

— GoPlus Security (@GoPlusSecurity) March 7, 2025

Unanticipated Listing and Sudden Price Drop

GoPlus Security, a company associated with decentralized security, stated it had no knowledge of the Binance listing. The GPS was only listed on the exchange on March 4th, and within 24 hours, the token price dropped. GPS’s price dropped from $0.14 to $0.06 in a short period. The relatively sharp drop raised concerns among investors regarding manipulations by insiders.

The price followed an additional decline to the $0.45 region but has recovered and currently trades around $0.05, with a decline of 6% in the past 24 hours. Moreover, its market cap and trading volume stand at $92.48 million and $210 million, respectively.

Further, the firm dismissed any involvement in insider dumping and assured the public about its high level of transparency. It also stated that it had set up a task force to investigate the price fluctuation. The team will also analyze trade data, liquidity characteristics, and market conditions.

Binance Flags Market Maker Activity

After the decline in prices, Binance decided to monitor GPS as they suspected it of unusual trading activities. The exchange said a market maker sold 70 million GPS tokens between March 4 and 5 while not making any buying orders. This constant selling led to a price decline, which created doubts about market manipulation.

This market maker was established as the most profitable user by Binance, where it earned about $5 million from these trades. Therefore, the exchange decided to freeze the account and further investigate the matter. Binance also decided to extend the monitoring tag on GPS and informed the traders about the increased risks and volatility.

Binance will extend the Monitoring Tag to include GoPlus Security (GPS) on 2025-03-07 due to a significant price drop immediately following the spot listing and certain market making behavior. Tokens were continuously sold by the Market Maker right after spot trading opened. The…

— Wu Blockchain (@WuBlockchain) March 7, 2025

Tokens under monitoring tag undergo review periodically and are required to meet Binance listing requirements. A risk awareness quiz must also be passed every 90 days for traders to continue to trade these assets. Further irregular activities might lead to delisting GPS from Binance.