GUN/USDT Trading Pair Sees 10 Orders/Second Sell-Off, 191M Tokens Transferred

On April 1st, an on-chain data analyst observed that the GUN/USDT trading pair on Binance experienced a high frequency of small sell orders from midnight to 8 a.m. The analyst noted that there were approximately 10 orders per second, with each order valued at around $6, resulting in the sale of about $216,000 worth of tokens per hour. This activity led to a significant amount of tokens being sold in a short period. The market maker for GUN subsequently canceled the batch sell orders, which resulted in a slight price recovery for the token.

Additionally, a Binance new listing report indicated that 2% of GUN's total token supply, amounting to 200 million tokens, was allocated for liquidity provision and market making. The report mentioned that these tokens had not yet been distributed to market makers and that additional address information would be provided later. However, it was revealed that the address in question transferred 191 million tokens at 3 a.m. on the previous day. This transfer raised questions about the distribution and management of the tokens allocated for liquidity provision and market making.

The high-frequency selling activity and the unexpected transfer of a large number of tokens highlight potential issues with the liquidity provision and market making strategies for GUN on Binance. The analyst's observations suggest that the market maker's actions may have contributed to market volatility and price fluctuations. The cancellation of the sell orders and the subsequent price recovery indicate that the market maker may have been attempting to stabilize the token's price after the initial selling activity.

The transfer of 191 million tokens, which were supposedly undistributed, adds another layer of complexity to the situation. It raises concerns about the transparency and accountability of the token distribution process. The fact that these tokens were transferred without prior notice or explanation suggests that there may be underlying issues with the management of the token supply and the communication between the project team and the market makers.

Overall, the events surrounding the GUN/USDT trading pair on Binance underscore the importance of transparency and effective communication in the management of token liquidity and market making. The analyst's observations and the subsequent actions taken by the market maker highlight the need for careful monitoring and regulation of token sales and transfers to ensure market stability and investor confidence.