Binance, the world’s largest crypto exchange, said it will target rogue market makers linked to projects recently listed on its platform. The announcement comes amid months of scrutiny following the October crash, with critics alleging Binance contributed to a market-wide liquidity squeeze, a claim the exchange has rejected.
In a blog post, Binance asserted that it actively monitors market-making activity and will take swift action against misconduct, including blacklisting market makers who breach its rules. Industry critics have claimed that Binance extracts value from launches, with figures ranging from a 10% tax to 15% of token supply, amounts that could reach tens of millions of dollars.
Prominent investor Simon Dedic has framed these practices as ‘Binance extraction,’ a greed-driven dynamic that harms founders, investors, and market makers, supported by data suggesting most Binance-listed projects have fallen toward zero. Binance has denied the charges as false and defamatory, while noting that rogue market makers can still cause losses for newly listed projects. CZ warned projects to disregard anyone promising a listing through close ties to him, saying such assurances should not be trusted. Binance has put rogue market makers on notice that manipulation could lead to blacklisting, in a stance reinforced by concerns about ‘massive extraction’ reportedly reaching up to $100 million.
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