Author: Yangz, Techub News

When you see a cockroach at home, there is already a nest of cockroaches.

After implementing bans on market makers with violations in the GoPlus Security and MyShell projects earlier this month, Binance issued another statement yesterday, stating that investigations found a market maker associated with the Movement project and decided to freeze its related profits for user compensation. Binance stated that on December 10 of last year, the day after the MOVE token went live, this market maker sold approximately 66 million MOVE tokens, and before being delisted on March 18 of this year, the final profit of this market maker reached 38 million USDT.

Once the news broke, the industry was in an uproar, and the Movement Foundation also responded immediately, stating that it had severed all ties with the market maker and promised to use the 38 million USDT recovered from the market maker to repurchase MOVE on Binance. Additionally, it stated that the Movement Foundation and Movement Labs were 'completely unaware' of the market maker's malicious actions.

Due to the massive profit amount, the industry not only condemned this 'parasite' behavior but also immediately launched an action to investigate this malicious market maker. Combined with various messages currently circulating on X, the greatest suspicion of this market maker falls on Web3port, the same as the malicious market makers disclosed by the community in the GoPlus Security and MyShell projects. (CZ has previously retweeted tweets exposing the market maker Web3Port).

Chen Jian shared that, "After gathering information from multiple sources, it can be basically confirmed that the market makers Goplus, Myshell, and Movement recently investigated by Binance are all the same Web3port." He also revealed that this market maker had previously asked through intermediaries if they could delete posts.

Zachxbt also stated that some investors revealed to him that this market maker is Web3port and suggested users check the recent tweets retweeted by this market maker to understand other projects they may be collaborating with.

Of course, netizens have already disclosed the projects handled by Web3port (as shown in the image below). According to Web3port's annual summary report for 2024, the Web3port foundation invested in 46 projects last year, with a total investment amount of about 35 million US dollars, covering multiple tracks such as Infra, DeFi, and AI. In addition, Web3Port Labs accelerated a total of 78 projects last year, assisting 83 projects in financing, with a total financing amount of about 120 million US dollars.

After identifying the suspicious market maker as Web3port, netizens also dug deep into the background and 'bad deeds' of this market maker.

Previously, CZ's retweet of the exposure tweet regarding Web3Port showed that the predecessor of Web3Port was Spark Digital Capital, with May Liu (Piaopiao) as the key figure. Initially, Spark Digital Capital operated under the guise of VC, but actually relied on outsourcing and FA business to let VC invest in projects while obtaining free tokens themselves. In 2021 and 2022, the industry's competition led project parties to be unwilling to give tokens for free anymore, prompting Spark Digital Capital to shift to an incubator model and establish Web3Port, mainly providing project packaging and VC connection services, charging 1-3% of tokens. Since relying solely on the incubator could not generate revenue, Spark Digital Capital also established the market maker Whisper to create a sales window for the free tokens in their hands under the name of market making.

@agintender stated that the rumors he heard are that 'Web3port's predecessor was Icport, which was previously an accelerator focused on the Dfinity (ICP) ecosystem, and later changed due to some well-known reasons.' In 2022, Web3port helped project parties obtain VC investment through a 'bootcamp' model and participation in major ecosystem hackathons, then changed tracks according to market rhythm, ultimately helping projects get listed on exchanges.

Additionally, he revealed that the Particle network, which was recently launched on Binance, was also incubated by Web3port in its early stages.

In addition to investigating the background of Web3port, netizens also discovered the glaring term 'exit' in the introduction on the Web3port Labs official website.

Web3port Labs provides comprehensive full-cycle acceleration and investment support for Web3 projects at various stages. Through our main market investment fund and secondary market liquidity fund, we utilize a one-stop Web3 accelerator platform to facilitate the entire lifecycle of startups, including investment, financing, management, and 'exit.'

Moreover, @0xVeryBigOrange revealed Web3port's 'eating behavior' based on the experience of a friend from a project party.

He stated that in January this year, Web3port's BD actively contacted the project and emphasized that they were only willing to be 'active market makers', not 'passive market makers.' @0xVeryBigOrange explained:

The so-called 'active market maker' actually utilizes the project's coins to short-sell, then repurchases at a low price and returns them to the project. Their logic is that the coins being market-made must first drop!

It should be noted that the information regarding Web3port and its predecessor's background mentioned above is currently only speculation. Setting aside this topic, many community users have expressed doubts about the reasonableness of completely pushing the responsibility onto the market makers, believing that this is actually a 'collusion' between the project parties and the market makers.

@0xcryptowizard bluntly stated that the market maker directly earned 38 million US dollars "does not make sense, as they must be shipping for the Move team." @cryptobraveHQ stated, "The information I received from four parties (exchange, actual market maker, scapegoat market maker, multiple project parties) confirmed that a certain Port market maker is indeed a scapegoat. He stated that market makers are the top predators in the industry, standing at the top of the pyramid, making money very easily. Web3Port entered the market maker track last year and stirred the cake, becoming the target of other market makers, 'exchanges and project parties also need to take the blame.'

Additionally, Zachxbt stated, "If the Movement's statement is to improve transparency, why not disclose the name of the market maker?"

@nosleepjon also believes that Movement's response is 'too weak, with many unresolved issues.'

He stated that the profit amount of 38 million US dollars has not been confirmed, "If the amount is higher, and all parties have already shared dividends, how should it be handled?" Additionally, he mentioned, "Selling tokens at a high price but repurchasing at a low price is actually free arbitrage for the foundation, rather than helping the holders."

Of course, he also pointed out the connection between Web3port and Spark Digital, questioning why a notoriously infamous 'VC' scammer was chosen as a market maker.

At the same time, a screenshot of a social media post revealed the connection between Movement and Dovey Wan, a founding partner of Primitive Ventures. That organization shared in an article last December, "In 2023, the Primitive Ventures team initially decided to abandon investment in Movement, but this decision was ultimately overturned by Dovey Wan and prompted the team to reassess the plan." Given Dovey Wan's reputation in the circle, many users began to question the hidden truths behind this investment.

When you see a cockroach at home, there is already a nest of cockroaches. The current question is, how many sordid trades are still hidden under the table in the industry? Perhaps there is not a small amount of capital settled in the circle, but if this kind of predatory business continues to exist, who would dare to invest in competitive coins? How can an all-encompassing competitive coin bull market be initiated and sustained?

(The above content is excerpted and reprinted with authorization from partner PANews, original link | Source: Techub News)

Disclaimer: The article only represents the personal views of the author and does not represent the views and positions of Blockke. All content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and trades, and the author and Blockke will not bear any responsibility for any direct or indirect losses arising from investors' trades.

"Binance once again blocks the violating market maker, how many more 'parasites' are there in the cryptocurrency industry?" This article was first published on (Blockke).