Gotbit Dumps WATER Tokens Following Debut On DEXs

1. WHO was/is affected? Investors and holders of WATER tokens were affected by the significant price decline. Anyone who purchased the token at or near its launch price likely experienced substantial losses. 2. WHAT happened? Gotbit, a crypto market maker founded by Russian trader Alexey Andryunin, sold approximately $4 million worth of WATER tokens shortly after the token's debut on decentralized exchanges (DEXs). This selling pressure contributed to or intensified a 70% price drop in the token's value. 3. HOW it happened, and how can the viewer prevent themselves from getting scammed? The market maker, who typically should provide liquidity and stability, instead appeared to sell a significant quantity of tokens they likely received from the project. To protect themselves, investors should: research the relationship between projects and their market makers, be cautious of new token launches especially when large amounts are allocated to service providers, verify token distribution and vesting schedules before investing, and never invest more than they can afford to lose in high-risk crypto assets. 4. WHY this happened? This likely happened due to misaligned incentives between the token project and the market maker. Market makers are often compensated with project tokens, creating a potential conflict of interest where they can profit by selling these tokens rather than maintaining market stability. Poor tokenomics design, inadequate vesting schedules, or lack of contractual restrictions on selling behavior may have enabled this situation. 5. WHERE are people affected? The impact was felt primarily by investors trading on decentralized exchanges where WATER tokens were listed. The crypto community at large is affected by such incidents as they damage trust in the broader ecosystem and particularly in new token launches.