The Collapse Behind GPS and SHELL: The Complete Operation Chain of a Cryptocurrency "Harvesting Machine"
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The Collapse Behind GPS and SHELL: The Complete Operation Chain of a Cryptocurrency "Harvesting Machine"
A hidden chain of interests gradually surfaced, revealing a幕后 that was more shocking than imagined.
Navigating Web3 tides with focused insightsWritten by: Fairy, ChainCatcher
Liquidity is the lifeline that maintains price stability, and market makers are its guardians. But what happens when these guardians turn into "predators"? How much chaos would the market descend into?
GPS dropped below its opening price within 20 minutes of listing on exchanges, plummeting 74% from a high of $0.15. SHELL fell from $0.7 to $0.26. The price charts of GPS and SHELL are nearly identical, as if manipulated by the same invisible hand.
With Binance’s investigation and ongoing community exposure, this incident quickly dominated weekend discussions across the industry. A hidden web of interests began to surface—names like Web3Port, Whisper, and May Liu were thrust into the spotlight—and the scandal behind the crash proved even more shocking than imagined...
Price charts of GPS and SHELL tokens
Market Maker's One-Sided Dump Triggers Price Collapse
Binance announced that recent abnormal movements in GPS prices were directly caused by a single market maker. This entity conducted only sell-side operations over 21 hours, completely failing to fulfill buy-side obligations, dumping 70 million GPS tokens and profiting approximately $5 million. This massive selling drained liquidity and sent prices into freefall.
Further investigation revealed both crypto projects had entrusted the same market maker with managing their token liquidity.
In response, Binance delisted the offending market maker, banning it from conducting any further market-making activities on the platform. Additionally, Binance confiscated all illicit profits gained through these violations and plans to use the funds to compensate affected users of the GPS and SHELL projects. Specific compensation details will be released later by the project teams.
The Mastermind Emerges: The Full Market Manipulation Chain
As the incident unfolded, the community dug deeper, uncovering the true orchestrators. This event not only exposed a manipulative market maker but also revealed a long-standing profit-seeking chain active within the crypto space.
Crypto KOL @_FORAB revealed that GSR was the passive market maker for both GPS and SHELL, while Shanghai-based Web3Port served as the active market maker.
Further investigation showed Web3Port allocated token allocations to Whisper, a market maker affiliated with itself. Whisper, operating under Web3Port’s Binance account with internal permissions, executed continuous sell orders, ultimately triggering the market collapse. Multiple industry insiders confirmed that Web3Port and Whisper belong to the same team, forming an end-to-end profit loop—from token acquisition to cash-out.
May Liu and the "Profit Assembly Line"
Web3Port partner May Liu’s long-term business model in the crypto industry has now come to light—from Spark Digital Capital to Web3Port, then to Whisper, she built a specialized profit pipeline targeting projects and exchanges.
Spark Digital Capital Era (VC Disguise):
Under the guise of a VC firm, May Liu operated actively in the crypto space, primarily providing outsourced marketing and financial advisory (FA) services. She packaged projects to secure free token allocations, then used Spark Digital Capital to pitch them to other VCs—turning actual investors into bagholders while securing risk-free profits for herself.
Web3Port Incubator (Free Tokens for Services):
After 2021–2022, as VC competition intensified, projects became less willing to offer free tokens, challenging this profit model. In response, May Liu founded Web3Port Incubator, offering early-stage projects packaging, guidance, and VC introductions in exchange for 1%-3% of free token allocations.
Whisper Market Maker (Exit Ramp):
Free tokens alone weren’t enough to complete the exit. Thus, Web3Port established Whisper as a market maker—ostensibly to provide liquidity, but in reality, to serve as an exit channel for their own free tokens. With internal authorization, Whisper could execute large-scale token sales on exchanges like Binance, cashing out while retail investors became long-term ATMs.
@_FORAB commented: "They’ve essentially 'fast-tracked' their way onto Binance in under a year. In a way, they actually did it—and have been doing it for a long time."
Controversy Mounts: Who Is Responsible for This 'Garbage Market'?
Blaming Market Makers Doesn't Hold Up
@yuyue_chris stated: "Projects are essentially the 'money printers,' while market makers help them convert tokens into cash, sharing proceeds per agreement. Given this aligned interest structure, it’s highly unlikely that a market maker would unilaterally defy the project and dump at scale."
@silverfang88 added: "I believe the decision to dump was likely made jointly by the project team and the market maker. In weak market conditions, market makers may advise projects to sell early rather than 'hold out,' since 'every new Binance listing turns into a waterfall.' If the project agrees, they jointly enable sustained sell pressure."
On the other hand, the projects themselves failed to attract sufficient buying demand. Shallow markets couldn’t withstand selling pressure or expand order books, leaving sell orders dominant and driving prices lower continuously.
"As described in *The Great Game*, NYSE market makers in the past exploited fully transparent exchange information to manipulate markets using information asymmetry and scalp retail investors."
@0xJamesXXX pointed out another overlooked issue: "According to publicly disclosed tokenomics, investor and incubator tokens are still far from unlocking. So why does this entity have so many unlocked tokens to dump? Is the project deceiving investors? Or are they distributing these tokens under alternative unlock mechanisms, such as airdrops?"
All Parties Profited from Malpractice—The Entire Profit Chain Must Be Reexamined
@forgivenever said: "The market is in its current state because the entire industry’s profit chain is riddled with bad actors who knowingly look the other way.
Blaming isolated scapegoats won’t solve anything. What truly needs reflection is how exchanges, VCs, projects, KOLs, and market makers collectively enable repeated retail exploitation."
Regarding Binance’s handling of this incident, diverse opinions emerged:
@armonio_liang commented: "If Binance aims to reshape industry norms and improve exchange regulatory frameworks, I support it. Looking back at Wall Street’s evolution, many regulations originated from industry self-regulation to foster healthier markets.
However, if this is merely a campaign-style purge aimed at redistributing benefits between institutions and retail investors, then removing market makers appears even more authoritarian than traditional financial markets—and hard to justify."
Supporters: Binance Cleans Up the Market
"Thumbs up to Binance. If wrongdoing carries no cost, neutral behavior gradually shifts toward malice."
"Protecting user interests and cracking down on violations—Binance did great here. Hope other exchanges follow suit to maintain market order."
"Binance demonstrates its commitment to the community and pursuit of fairness in the industry."
Critics: Undermining Free Market Competition
"While morally justified, this is far from decentralized."
"Is Binance’s 'iron-fist' crackdown truly about protecting retail investors—or about strengthening its control over the market? Everyone knows the delicate relationship between exchanges and market makers, and Binance itself may not be entirely outside this system."
The turmoil triggered by the GoPlus and MyShell incidents has exposed deep-seated conflicts of interest and regulatory gaps in the crypto industry. Blaming individual market makers oversimplifies the problem, ignoring the roles played by exchanges, VCs, projects, KOLs, and others along the profit chain.
So, who is really responsible for this 'garbage market'?
The future may just be an endless "Great Game"...
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