{"id":14808,"date":"2024-06-28T17:39:59","date_gmt":"2024-06-28T14:39:59","guid":{"rendered":"https:\/\/forklog.com\/en\/gotbit-admits-to-70-token-dump-of-water\/"},"modified":"2024-06-28T17:39:59","modified_gmt":"2024-06-28T14:39:59","slug":"gotbit-admits-to-70-token-dump-of-water","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/gotbit-admits-to-70-token-dump-of-water\/","title":{"rendered":"Gotbit Admits to 70% Token Dump of WATER"},"content":{"rendered":"<p>Gotbit Hedge Fund, the market maker (MM) for the meme token WATER, has addressed analysts&#8217; concerns by admitting to the deliberate crash of the asset&#8217;s price.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">On-chain analysts are worried about the &#8220;team&#8221; sales of <a href=\"https:\/\/twitter.com\/search?q=%24WATER&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$WATER<\/a> tokens. However, most of these sales were conducted by Gotbit as part of MM operations. Why did we sell and what GHF is doing with $4M profits from these sales? <\/p>\n<p>Read in the thread below <a href=\"https:\/\/t.co\/zI6QhWsroQ\">pic.twitter.com\/zI6QhWsroQ<\/a><\/p>\n<p>\u2014 Gotbit Hedge Fund (@gotbit_io) <a href=\"https:\/\/twitter.com\/gotbit_io\/status\/1806324761024176555?ref_src=twsrc%5Etfw\">June 27, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>When the coin launched on June 24 on DEX Raydium, its price surged by 83% before plummeting by approximately 70%.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/docsz\/AD_4nXeV_rxIahQmgnZtLMHshfQI0lRD7QEP2cz81XmOus1nnmSeLvZbHfGBozM8wj5d7w92zFUjb8JctMBpXCQzW2RT5mz89TwbKUQhom6ELEOIjvGouzv2Q6pfqDLfNfB6NtjlEenzOLSqwA8OUru9q2sJAiY?key=V1VRWrv321-qYSUraIEGoQ\" alt=\"Gotbit Admits to 70% Token Dump of WATER\"\/><figcaption class=\"wp-element-caption\">Hourly chart of WATER\/USD on Raydium exchange. Data: <a href=\"https:\/\/dexscreener.com\/solana\/2c9f3unmbxftqesmsscbw5yxjwd9hxfsmlxti9mqtwpr\">DEX Screener<\/a>.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cOn-chain analysts are concerned about the team\u2019s sales of WATER tokens. However, most were conducted by Gotbit as part of MM operations. Why did we sell and what will we do with the $4 million profit from these sales?\u201d the company representatives questioned themselves.<\/p>\n<\/blockquote>\n<p>According to them, \u201c<span data-descr=\"traders who buy the token immediately after launch, typically using software\" class=\"old_tooltip\">snipers<\/span> are vampires who insult the community.\u201d They claimed the initial pump was caused by several independent traders who bought the token right at launch using additional software.<\/p>\n<p>Thus, Gotbit decided to \u201ctake money from the snipers, maintaining the price two to three times above the presale price.\u201d<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe MM&#8217;s task was to provide equal opportunities to all investors who bought the token at the presale. Maintaining the WATER price at a market cap of $500 million would have led to queues for sales among presale participants who spent 180-200 SOL,\u201d the company explained.<\/p>\n<\/blockquote>\n<p>The market maker also took this step to \u201cprotect the community from volatility,\u201d whose members might \u201cmistakenly buy the token at an FDV of over $1 billion,\u201d that is, before the pre-market traders sold. According to the team, such a situation would have led to losses of 90%.<\/p>\n<p>Gotbit even attached a chart to their post, marking the sales and purchases of WATER.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-eu.googleusercontent.com\/docsz\/AD_4nXcRFu8GUXmcgK66KFZQxBOB76LNL8fi4YB_-ewx29RDi-DyeKDHwwNR7ZQG86taZr-B05oFcLfPR0SiXsbihcCPKVbhqbxhRG7rr9bXAzAZ0KgZ6yjK5xPIVLw1TOfG-dDXIYhhGJsol4ccVos3O7ZDdmrj?key=V1VRWrv321-qYSUraIEGoQ\" alt=\"Gotbit Admits to 70% Token Dump of WATER\"\/><figcaption class=\"wp-element-caption\">Gotbit&#8217;s buy\/sell chart. Data: X.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cTo protect the community, we lowered the price to a fair level,\u201d the firm emphasized.<\/p>\n<\/blockquote>\n<p>For operations, the MM used funds allocated within the project&#8217;s tokenomics for \u201cliquidity and exchanges.\u201d They sold tokens worth $4 million \u201cat average quotes with a capitalization of $300 million.\u201d<\/p>\n<p>After reaching the pre-market price, Gotbit began supporting the asset&#8217;s price. In their view, \u201cweak hands\u201d sold their tokens at break-even, without harming the community.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThere was no guide on how to properly create a large pre-sale project in the market, ensuring that all investors could exit with claims. There wasn\u2019t before. Gotbit developed it. The launch of WATER proved it. Follow us to learn more about market making,\u201d the company representatives concluded.<\/p>\n<\/blockquote>\n<p>However, the community did not appreciate the MM&#8217;s manipulations. Some users called on the U.S. Securities and Exchange Commission (SEC) to pay attention to the incident.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">Is <a href=\"https:\/\/twitter.com\/SECGov?ref_src=twsrc%5Etfw\">@SECGov<\/a> around? There is some fines to hit, money to be made and thrown these clowns in jail.<\/p>\n<p>\u2014 Holy Bif (@holybif) <a href=\"https:\/\/twitter.com\/holybif\/status\/1806411844141326676?ref_src=twsrc%5Etfw\">June 27, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIs the SEC around? Some fines need to be issued, money to be made, and these clowns thrown in jail,\u201d wrote a commentator under the nickname Holy Bif.<\/p>\n<\/blockquote>\n<p>Others <a href=\"https:\/\/x.com\/_TeeJJ_\/status\/1806480201293136326\">questioned<\/a> how investors could be protected by dumping their own tokens.<\/p>\n<p>In May, the WSJ <a href=\"https:\/\/u1f987.com\/en\/news\/binance-allegedly-overlooked-market-manipulation-by-dwf-labs\">reported<\/a> that Binance overlooked market manipulation by the market maker DWF Labs.<\/p>\n<p>In April 2023, the company was already suspected of dumping tokens from its portfolio projects worth at least $65 million.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gotbit Hedge Fund, the market maker (MM) for the meme token WATER, has addressed analysts&#8217; concerns by admitting to the deliberate crash of the asset&#8217;s price. On-chain analysts are worried about the &#8220;team&#8221; sales of $WATER tokens. However, most of these sales were conducted by Gotbit as part of MM operations. Why did we sell [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[787,1323,1161],"class_list":["post-14808","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dex","tag-investigations","tag-memes"],"aioseo_notices":[],"amp_enabled":true,"views":"56","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/14808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=14808"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/14808\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/14807"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=14808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=14808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=14808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}