Web3 security firm GoPlus Security is currently facing a challenging situation after its native GPS token experienced a drastic 60% drop in value within a single day. The company has launched an investigation into the matter, highlighting that they were not informed about the listing of their token on the popular cryptocurrency exchange, Binance.
GoPlus Security, known for its work on developing the “first decentralized security layer,” expressed surprise and concern over the sudden price decline of its GPS token following its listing on Binance. The team at GoPlus Security revealed that they were not given prior notice about the listing and only became aware of it when the public announcement was made.
In response to the unexpected price drop, GoPlus Security has formed an investigation team to delve into the reasons behind the significant fluctuations in the token’s value. The company has dispelled rumors of insider dumping and emphasized their commitment to cooperating with Binance to address any issues that may have contributed to the price decline.
The GPS token serves as a utility token within the GoPlus Security ecosystem, allowing users to receive rewards for participating in network security activities such as staking GPS to operate security nodes or provide security data. Despite the recent challenges, the company remains dedicated to advancing its mission of enhancing web3 security.
On the day of the token listing, GoPlus Security transferred 500 million GPS tokens to Binance, with 300 million tokens already distributed as rewards for Binance’s BNB HODLer program. The remaining 200 million tokens are earmarked for future marketing initiatives to promote the adoption of the GPS token.
Following the price drop, Binance announced that it would be closely monitoring the GPS token due to the significant price decline and certain market-making activities by one of GPS’ market makers. GoPlus Security reassured the public that they are actively investigating the situation in collaboration with Binance and will provide updates as more information becomes available.
At present, the GPS token is trading at $0.061 according to data from crypto price aggregators. The company remains focused on addressing the challenges at hand and navigating the complexities of the cryptocurrency market to ensure the long-term success of the GPS token and its underlying security solutions.