Binance tightens control over market makers
One of the most opaque segments of the crypto market is now moving into the spotlight.
Projects are now required to:
— disclose their market maker
— reveal the legal entity behind it
— outline key contract terms
Additionally, the following are now prohibited:
❌ profit-sharing agreements
❌ guaranteed return structures
The reasoning is clear — such models create conflicts of interest and distort fair market behavior.
Token lending agreements are also under scrutiny, with strict requirements to specify how borrowed tokens are used.
📊 Why it matters:
Market makers play a key role:
— providing liquidity
— reducing spreads
— stabilizing price action, especially during listings
However, issues arise when they stop acting as neutral liquidity providers.
Binance highlights problematic practices such as:
— selling against token unlock schedules
— one-sided market pressure
— artificially inflating volume without real price movement
👉 In essence, this signals a shift: the era of “grey zone” market making may be coming to an end.