Web3 security firm GoPlus Security has launched an investigation after its GPS token plummeted by over 60% in a single day, citing that it was not informed in advance about the listing on Binance.
Unanticipated Listing and Price Drop
GoPlus Security, which promotes itself as the “first decentralized security layer,” saw its native GPS token lose more than 65% of its value following its March 4 listing on Binance. In a statement on March 7, the firm denied allegations of insider dumping and emphasized that it had no prior knowledge of the listing. The team only became aware when the public announcement was made and immediately began working with Binance to meet any additional requirements.
“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.” – GoPlus Security
Investigation Underway
In response to the steep decline in GPS token value, GoPlus Security has formed an internal investigation team to analyze the reasons behind the sudden drop. The firm also disclosed that on the day of the listing, it transferred 500 million GPS tokens to Binance, of which:
- 300 million GPS tokens were distributed as rewards for Binance’s BNB HODLer program.
- 200 million GPS tokens remain earmarked for future marketing efforts.
Binance’s Response and Market Maker Activity
Following the sharp decline, Binance announced it would extend the monitoring tag to GPS due to its significant price drop immediately after the listing and certain market-making behaviors observed from one of GPS’ market makers.
Future Outlook
GoPlus Security has assured the public that it is working with Binance to uncover the cause of the sudden price drop and will release further updates as the investigation progresses. As of press time, GPS is trading at $0.061, according to crypto price aggregators.
