AI Crypto Tokens Face Scrutiny Over Perp Market Price Volatility and Speculative Trading

AI crypto assets are drawing increased scrutiny as abnormal price movements in perpetual futures markets raise concerns about potential manipulation. The recent volatility in tokens like GMX and SWARMS has largely been driven by leveraged trading in perps rather than organic demand in spot markets, according to key data points. Funding rates, liquidation levels, and open interest trends suggest that the rally may be fueled more by short-term speculative positioning than fundamental buying.

SWARMS, currently trading near $0.028, has seen its perp funding rate climb to 0.098%, indicating a high concentration of leveraged long positions. This suggests traders are actively pushing the price higher to maintain their positions, a costly endeavor if momentum stalls. Meanwhile, GMX, which recently turned positive in its funding rate, shows signs of short covering, with open interest dropping sharply across major exchanges. On Binance, open interest in GMX fell by 9.9% over the past 24 hours, while OKX and KuCoin reported even steeper declines of 15.4% and 40.6%, respectively [1].

Liquidation maps further highlight the risk of manufactured price movements. GMX has approximately $3.04 million in short positions between $23 and $26, and if the price enters this range, forced buying could temporarily accelerate gains. SWARMS, on the other hand, has $5.57 million in long stop-loss orders between $0.017 and $0.023, and a further $3 million in short positions above $0.03. This structure creates an environment where price swings can be exploited to trigger stop losses on one side and attract momentum traders on the other [1].

Spot flows, however, are not supporting the perp-driven rally. SWARMS is experiencing significant outflows from exchanges, which may reduce near-term selling pressure but does not confirm long-term bullish sentiment. GMX has seen a $75,800 inflow, though this could indicate hedging or selling activity rather than accumulation [1].

Market participants are advised to closely monitor funding rates, open interest, and exchange flows as signals of market health. A sustained high funding rate in SWARMS without corresponding price gains may signal an unwinding of long positions, while continued falling open interest in GMX suggests short covering rather than new buying [1]. The liquidation walls on both tokens also suggest that price reversals could be imminent if traders push the price into key resistance or support zones.

[1] Source: "AI Crypto Coins Under Suspicion As Perp Price Action Raises Manipulation Fears," https://coinmarketcap.com/community/articles/689a96b6f48bf17820639f3b/