The crypto market maker Gotbit recently faced criticism after selling $4 million worth of WATER tokens, which contributed to the token’s 70% price decline.

Market Maker Gotbit’s Role in WaterCoin’s Price Drop

Gotbit, founded by Russian trader Alexey Andryunin, was identified as a key player in the dramatic 70% price crash of WaterCoin (WATER) shortly after it debuted on decentralized exchanges.

Is the #WaterCoin team selling $WATER?

Blockchain researchers at Lookonchain observed that the development team transferred 844.44 million WATER tokens to 11 new wallets that didn’t participate in the pre-sale. These wallets sold WATER and obtained more than 18,600 SOL (equivalent to $2.35 million) by selling the tokens.

Lookonchain researchers alleged that wallets associated with the WaterCoin team began aggressively selling WATER as soon as trading started on decentralized exchanges.

Gotbit’s Response

In a statement on June 27, Gotbit revealed that it was responsible for selling the WATER tokens, adding that the team made $4 million as part of its market-making operations. Gotbit explained that WATER wasn’t supposed to surge so quickly, attributing the initial price spike to “several independent snipers.”

Some of them incurred losses due to Gotbit’s active selling. We took the money from the snipers and used it to support the price for 2-3x from the presale!

Gotbit further clarified that its role as a market maker was to provide “equal opportunities for all presale investors,” which is why the firm quickly “lowered the price to a fair level.”

The large WATER community could have mistakenly bought the token at an FDV [fully diluted value] of 1B+ before presale investors received their tokens, potentially facing a -90% loss afterward. To protect the community, we lowered the price to a fair level.

Community Impact and Market Reaction

Gotbit, previously known for manipulating trade volumes on crypto exchanges, claimed it began “supporting the price and providing liquidity to sellers” after reaching the presale metrics, assuring the public that the trades caused “no harm to the WATER community.”

Despite these assertions, the price of WATER remains 88% below its debut value as of June 26. The WaterCoin team has made no public statements regarding the trading practices, showing little concern for the market turmoil.

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