Crypto exchange Binance has updated its guidance on market maker behavior, laying out a set of trading patterns it says could signal manipulation or misaligned incentives.

The update builds on a February 2025 post that focused on the role of market makers and Binance’s surveillance systems. This time, the exchange is more explicit about what it considers problematic activity, particularly around token launches and early trading.

Market makers typically provide liquidity by placing both buy and sell orders, helping keep spreads tight and trading orderly. When functioning properly, Binance said they “tighten spreads, deepen liquidity, and reduce slippage,” especially during volatile periods.

But the exchange warned that not all activity that appears to support liquidity is beneficial. “Not every market-making arrangement is aligned with long-term market integrity,” Binance wrote, pointing to cases where trading behavior can undermine price stability or trust.

Among the behaviors Binance called out are selling that doesn’t line up with token unlock schedules, persistent one-sided trading that leans heavily toward sell orders, and large, coordinated deposits and sales across multiple exchanges. The exchange also pointed to cases where trading volume appears high but prices barely move, which can indicate wash trading, as well as price swings in thin order books where even small trades can move markets.

The updated guidance also goes a step further in how projects should work with market makers. Binance said teams should conduct “rigorous due diligence” when selecting partners, vetting them based on track record, credibility and compliance standards, while avoiding profit-sharing or guaranteed-return arrangements. Token loan agreements, it added, should clearly define how assets can be used.

Binance tightens token launch expectations

That shift marks a move away from last year’s more principles-based framing toward something closer to a checklist of warning signs.

Binance’s earlier post emphasized how market makers improve liquidity and how the exchange monitors for manipulation. The updated version instead focuses on how to spot activity that may not be organic and how projects should manage their liquidity providers.

The guidance also reiterates expectations around token launches, saying projects should adhere to release schedules and avoid premature or large-scale token distribution that could disrupt markets.

Binance said tokens “must not be sold, released, or distributed ahead of agreed timelines,” highlighting concerns around early supply hitting the market.