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Gotbit abandons WATER tokens after debut on DEXs
Cryptocurrency market maker Gotbit came under fire after selling $4 million worth of WATER tokens, which intensified the token’s price drop by 70%.
Market maker Gotbit, founded by Russian trader Alexey Andryunin, has been identified as one of the entities responsible for the dramatic 70% price crash of WaterCoin (WATER) shortly after the token’s debut on decentralized exchanges.
In a June 24 X post, blockchain researchers at Lookonchain presumed that wallets associated with the WaterCoin team began aggressively selling WATER as soon as trading on decentralized exchanges began.
On-chain analysts are worried about the “team” sales. $WATER tokens. However, most of these sales were conducted by Gotbit as part of MM operations. Why did we sell and what is GHF doing with the $4 million in profits from these sales?
Read the thread below photo.twitter.com/zI6QhWsroQ
— Gotbit Hedge Fund (@gotbit_io) June 27, 2024
However, in a June 27 post on X, Gotbit revealed that it was responsible for selling WATER tokens as the token’s price plummeted, adding that the team made $4 million “as part of market making.” In its defense, Gotbit implied that WATER shouldn’t have risen so quickly, attributing the initial price spike to “several independent snipers.”
“Some of them suffered losses due to active sales of Gotbit. We took the money from the snipers and used it to support the price for 2-3 times from the presale!”
Understood
However, in a subsequent post, Gotbit made a quick U-turn, stating that its role as a market maker was to provide “equal opportunity to all presale investors,” which is why the company quickly “lowered the price at a fair level”.
“The large WATER community may have mistakenly purchased the token at a FDV [fully diluted value] of 1 billion+ before pre-sale investors received their tokens, potentially facing a -90% loss afterwards. To protect the community, we have lowered the price to a fair level.”
Understood
Gotbit, formerly known for falsify trading volumes on cryptocurrency exchanges, said it began “supporting the price and providing liquidity to sellers” after reaching pre-sale parameters, assuring the public that the trades did not cause “any harm to the WATER community.”
Despite the company’s claims, WATER’s price remains 88% below its debut value on June 26. The WaterCoin team has not made any public statements regarding its trading practices, appearing unfazed by the market turbulence.