Binance targets market makers ‘who breach our rules’ – But critics push back

Binance, the world’s largest crypto exchange, will now target rogue market makers linked to newly listed projects on the platform.

The move comes after months of criticism against the exchange, especially after the 10th of October crash. Some critics blamed Binance for the market-wide liquidation cascade, although the exchange denied these claims.

In a recent blog, the exchange warned,

We actively monitor market-making activity to enforce the highest standards and will take swift, decisive action against any misconduct, including blacklisting market makers who breach our rules.

Is Binance responding to listing criticism?

Beyond this, Binance’s listing practices (supporting trading for new projects) have also come under scrutiny following the October crash. Several builders, projects, and even VC firms backing these projects came out against Binance’s alleged flawed listing practices.

Mike Dudas of 6th Man Ventures, for example, claimed that Binance collects a ‘10% tax’ on every project that launches on its platform.

A similar claim was made by MoonRock Capital founder Simon Dedic in 2024. Dedic alleged that the exchange demands 15% of the token supply, or about $50M-$100M, which is ultimately dumped immediately.

According to him, this was the reason most listed projects have been bleeding with massive losses.

In 2026, Dedic maintained his criticism of the exchange’s listing practice. He called “Binance extraction” an extreme “greed,” “short-sightedness,” and a “massive negative-sum” game that ruins founders, investors, and market makers.

He cited a chart that showed nearly three-quarters of Binance-listed projects have dropped to nearly zero.

However, Binance has always denied these claims as ‘false’ and ‘defamatory.’ Although critics blamed the exchange for burning even market makers, the latest Binance statement suggests it views rogue market makers as the cause of the losses incurred by newly listed projects.

Market makers are entities that provide liquidity on centralized and decentralized exchanges to minimize slippage and ensure an orderly trading experience.

But Binance noted that they can act irresponsibly too, urging new projects to thoroughly vet their market makers and their on-chain activity.

Additionally, Binance founder CZ cautioned projects to disregard anyone promising them a listing on the platform who claims close ties to him.

Final Summary

• Binance has put rogue market makers on notice, warning that any manipulation of listed projects could prompt blacklisting.
• The move comes following criticism of ‘massive extraction’ from Binance’s listing processes, which could reportedly reach as high as $100M.