This Binance guide is VERY important because it discusses one of the most “dark” topics in the crypto market: Market Makers.



🧠 What is this guide?


It is a document where:


👉 Warns about manipulative practices

👉 Defines how market makers should behave

👉 And gives warning signals for projects and users


#mm

🧩 First: what is a market maker?


A market maker (MM) is someone:


  • Provides liquidity (buy/sell orders)

  • Reduces spreads

  • Facilitates trading


👉 In theory: good

👉 In practice: can be VERY dangerous


#RiskAnalysis

🚨 RED FLAGS (the most important of the guide)


💣 1. Artificial volume

  • A lot of volume… but with no real movement

  • Wash trading (buying from themselves)


👉 Signal:
The volume is not organic



💣 2. Coordinated pump & dump


  • Rapid increases without basis

  • Then a violent drop


👉 Happens frequently in small tokens where whales can easily use


#Spoofing

💣 3. False orders (spoofing)


  • Large orders that appear/disappear

  • Manipulate market perception



💣 4. Excessive control of supply


  • Market maker controls a large part of the token

  • Can easily manipulate the price



💣 5. Dump after listing


  • Price rises upon listing

  • Then falls sharply


👉 Very common in new tokens



⚠️ Why does Binance publish this?


Because the problem is REAL:


👉 Many projects hire MMs that:


  • Inflate volume artificially

  • Manipulate price

  • Harm users



🧠 Key insight


👉 Binance is indirectly saying:


“There is manipulation in the market, and we want to control it”



📊 Guidelines (what Binance recommends)


🟢 For projects:


  • Transparency with market makers

  • Do not allow manipulation

  • Diversify liquidity



🟢 For users:


  • Do not rely solely on volume

  • Analyze market depth

  • Avoid FOMO


#FOMOalert

💥 Impact on the market (VERY important)


🟢 Positive


  • More transparency

  • Less extreme manipulation

  • Better institutional trust



🔴 Negative


  • Some tokens will lose ‘fake’ volume

  • Drops in inflated projects


🧠 Translation:


Binance is basically explaining EXACTLY that type of movement



🧠 Advanced insight (very important)


👉 This is a signal of structural change:


BEFORE:


  • Manipulated market (and tolerated)


NOW:


  • Exchanges want to appear more institutional



🎯 Clear conclusion


👉 The guide means:


Binance is trying to clean up the market and reduce manipulative practices from market makers


#MarketMakers

⚡ Key phrase


👉 “Not all volume is real… and not all price is honest.”