DeFi Platform RedStone Denies Partnership Rumors with Web3Port and Whisper
The decentralized finance (DeFi) oracle provider RedStone has publicly refuted claims of a partnership with Web3Port, a Web3 acceleration platform, and Whisper, a market-making entity.
According to an official statement released by RedStone, the rumors were false and originated without their knowledge or consent.
The company clarified that neither Web3Port nor Whisper was involved with their market operations or service provisions.
RedStone immediately acted upon discovering these misleading claims, demanding their removal from public channels. However, remnants of the false information may still persist online.
The firm reassured its community that its market strategies remain independent and uninfluenced by third parties attempting to associate with them illegitimately.
The Whisper Controversy and RedStone’s Market Integrity
RedStone’s decision to distance itself from Web3Port and Whisper is likely influenced by ongoing controversies surrounding these entities.
Reports indicate that Binance recently banned an unidentified market maker accused of manipulating trading volumes for GoPlus Security (GPS) and MyShell (SHELL) tokens.
This decision followed an internal investigation that resulted in Binance confiscating all illicit profits generated by the market maker.
Although Binance has not officially disclosed the name of the banned firm, according to a report from Yellow, industry insider AB Kuai Dong suggested a link to May Liu, a key figure in the market-making space.
Liu is known for operating Whisper, a market-making entity, while also running Web3Port, an incubator for Web3 projects.
This has fueled speculation that Whisper could be involved in unethical trading practices, including artificially inflating token prices and manipulating liquidity.
Given these allegations, RedStone’s swift rebuttal of any association with Web3Port and Whisper appears to be a strategic move to safeguard its reputation.
The company has clarified that it only collaborates with trusted and rigorously vetted liquidity providers.
Despite the controversy, RedStone’s native token, RED, has demonstrated resilience in the market.
The token has increased 14.5% in the past week and grown impressively 74% over the past month.
This suggests that the firm’s proactive stance in addressing the rumors has helped mitigate potential negative impacts on investor sentiment.
RedStone’s Expanding Role in the DeFi and RWA Space
This latest controversy occurs at a time when RedStone is making significant strides in the DeFi ecosystem, particularly in real-world asset (RWA) tokenization.
On March 12, RedStone announced its partnership with Securitize, a leading RWA tokenization platform.
The collaboration aims to provide reliable price feeds for tokenized securities issued by major financial institutions such as Apollo, BlackRock, Hamilton Lane, and KKR.
RedStone’s modular design enables custom pricing methodologies tailored to the needs of institutional-grade asset issuers.
Through this partnership, RedStone will deliver price feeds for various Securitize-tokenized products, including the Apollo Diversified Credit Securitize Fund (ACRED), Hamilton Lane’s Senior Credit Opportunities Fund (SCOPE), and the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
The company will also offer cross-chain data feeds to ensure seamless integration across both Ethereum Virtual Machine (EVM) and non-EVM chains.
Securitize’s CEO, Carlos Domingo, mentioned in the report that the future of blockchain technology hinges on the seamless integration of tokenized securities within the DeFi space.
He noted that RedStone’s infrastructure would facilitate the adoption of on-chain financial products while ensuring security and compliance.
With the global securities market surpassing $255 trillion as of July 2024 and the on-chain economy valued at over $20 billion, RedStone is becoming a cornerstone in bridging traditional finance with decentralized applications.
Looking ahead now, RedStone has distanced itself from the rumor to prevent it from tarnishing the project’s reputation, which would stop the momentum they’re building now.