GoPlus Security Reacts to GPS Token’s 60% Drop as Binance Blames Market Makers

GoPlus Security, a Web3 security firm, is currently investigating a dramatic 60% price drop of its native GPS token that occurred on March 7, following its listing on Binance. The steep decline in value, which saw the token lose over 65% of its worth in a single day, has raised concerns within the company. In a response to the price fluctuation, GoPlus Security clarified that it was not informed in advance about the listing on Binance, and the team only learned of it when the public announcement was made. In light of the sudden price plunge, GoPlus Security has formed an investigation team to identify the cause of the volatility.

The firm emphasized that rumors about insider dumping were unfounded, asserting that the team had no prior knowledge of the listing and acted promptly after the announcement. GoPlus Security stated that it immediately began collaborating with Binance to meet any additional requirements on its end, and further investigation is ongoing.

GoPlus Security’s GPS token is a utility token, primarily designed to incentivize users who stake GPS tokens to run security nodes or provide security data to the network. This token’s role in maintaining network security makes the price movement and listing events critical for the firm’s ongoing operations.

As part of the investigation, GoPlus Security revealed that it had transferred a total of 500 million GPS tokens to Binance on the day of the listing. Of those, 300 million were distributed as rewards for Binance’s BNB HODLer program, while the remaining 200 million tokens are earmarked for future marketing efforts. Despite the significant price drop, Binance has responded by extending a monitoring tag to the GPS token due to “market-making behavior” from one of the token’s market makers, which may have contributed to the price fluctuations.

GoPlus Security has assured the public that it is working closely with Binance to understand the situation and that further updates will be provided as the investigation progresses. As of now, GPS is trading at $0.061, according to data from crypto price aggregators, showing some recovery after the initial plunge.