Projects were allegedly swayed into signing contracts with dubious market makers as consideration for listing on crypto exchange Coinone.
1. Coinone, a South Korean cryptocurrency exchange, has been accused of pressuring blockchain projects to sign contracts with questionable market makers in exchange for being listed on their platform. These market makers allegedly engaged in manipulative trading practices, such as wash trading and spoofing, to artificially inflate trading volumes and create the illusion of liquidity.
2. The allegations were made by a former Coinone employee who claimed that the exchange’s management was aware of these practices and actively encouraged them. The employee also alleged that Coinone charged exorbitant listing fees and demanded a percentage of the tokens issued by the projects they listed.
3. The accusations have raised concerns about the integrity of Coinone’s trading volumes and the potential harm to investors who may have been misled by the inflated numbers. It also highlights the need for greater transparency and regulation in the cryptocurrency industry to prevent such practices from occurring.
In summary, the allegations of Coinone pressuring blockchain projects to sign contracts with dubious market makers in exchange for listing on their platform raises serious concerns about the integrity of trading volumes and potential harm to investors. It underscores the need for greater transparency and regulation in the cryptocurrency industry.