GoPlus Security responds to GPS token’s 60% plunge as Binance points to market makers
Web3 security firm GoPlus Security has launched an investigation after its token dropped 60% in a single day, noting that it wasn’t informed about the the listing beforehand.
GoPlus Security (GPS), a web3 firm that says it’s working on the “first decentralized security layer,” is investigation a steep price fall of its native GPS token, which suddenly lost over 65% of its value following listing on cryptocurrency exchange Binance.
In an X thread on March 7, the firm denied rumors of insider dumping, adding that it wasn’t informed in advance about the listing, which took place on March 4. According to GoPlus Security, the team only learned about the listing when the public announcement was made. In response to the price drop, which saw the token’s value plunge by more than half within 24 hours, the firm has formed an investigation team to explore the cause of the fluctuations.
“Everything happened rapidly, and our team only learned about the listing when the public announcement was made, after which we immediately worked to cooperate with Binance to facilitate any additional requirements on our side.”
GoPlus Security
GoPlus Security’s native token, GPS, is designed to be a utility token, enabling users to receive incentives for safeguarding the network by staking GPS to run security nodes or provide security data, as Coin Insider Daily explained earlier.
In addition to launching its investigation, GoPlus Security also revealed that on the day of the listing, it transferred 500 million GPS tokens to Binance, 300 million of which have already been distributed as rewards for Binance’s BNB HODLer program. The remaining 200 million tokens will be used for future marketing efforts, the firm said.
Following the price drop, Binance said it would extend the monitoring tag to include GPS due to a “significant price drop immediately following the spot listing and certain market making behavior of one of GPS’ market makers.”
GoPlus Security assured the public that it’s investigating the issue with Binance and will provide further updates as more information becomes available. As of press time, GPS is trading at $0.061, per data from crypto price aggregators.
