Binance outlines market maker, token launch ‘red flags’ in updated trading rules

Crypto exchange Binance has revised its guidance concerning market maker conduct, explicitly outlining trading patterns that suggest manipulation or misaligned incentives, especially around token launches. The exchange noted that while market makers usually provide beneficial liquidity, some arrangements undermine market integrity. Specific behaviors flagged as problematic include selling inconsistent with token unlock schedules, persistent one-sided selling, large coordinated sales across exchanges, high volume with minimal price movement (suggesting wash trading), and significant price swings in thin order books. Furthermore, Binance stressed that projects must perform rigorous due diligence when selecting market makers, avoiding profit-sharing or guaranteed-return deals, and ensuring token loan agreements clearly define asset usage. The updated guidance moves toward a checklist of warning signs, reiterating that tokens must not be sold or distributed ahead of agreed timelines to prevent market disruption.

(Source：The Block)