$MYX may hit $3, but manipulation is concerning; avoid the stock.

$MYX may hit $3, but manipulation is concerning; avoid the stock.

The MYX token, native to the decentralized perpetual exchange MYX Finance, experienced a dramatic 1957% increase in value in August, reaching an all-time high (ATH) of over $2. This rapid rally has raised significant concerns among industry experts, who caution about potential price manipulation and artificial price movements.

MYX was launched in early May through Binance Wallet’s 15th Exclusive Token Generation Event (TGE) and secured listings on Binance Alpha, MEXC, Bitget, and more. Despite volatile price action, MYX saw explosive growth in August, with its value appreciating by around 1957% since the beginning of the month. It went from around $0.104 to an all-time high of over $2.

After peaking, MYX shed some of its gains to trade at $1.67 at press time, but it was still up 125% over the past day, making it the top daily gainer on CoinGecko. The token's market cap has also surged from nearly $15 million to over $200 million.

However, the rapid price increase has not been well-received by market observers. Analysts point to suspicious trading activities and strategic market maneuvers. One prominent on-chain analyst highlighted that the situation involves significant price manipulation and strategic trading, with six major addresses making over 2,240 small transactions to purchase 6.72 million MYX worth about $3.924 million [1].

The analyst noted that trading volumes on PancakeSwap and Bitget were nearly identical, while Binance’s contract trading saw a massive $4.97 billion in 24-hour volume with a funding rate of -2%. This could suggest that traders were betting on the price decline.

Furthermore, the analyst drew attention to the MYX token unlock, which will release 38.99 million tokens, with 30 million MYX allocated to Binance Wallet Airdrop and the rest to airdrops and bounty. The value of these tokens has surged from $3.9 million to $59.42 million, raising concerns about potential price manipulation for the unlock.

Another market watcher, Tommy, accused MYX of being involved in market manipulation, noting that the coin went from a $15 million market cap to over $60 million in just two days, with $7 billion+ in perpetual volume but hardly any genuine spot buyers. He emphasized that these manipulative practices erode trust in centralized exchanges and could lead to massive liquidations, wiping out retail while enriching puppet masters.

In conclusion, while MYX may hit $3, the recent rally has raised significant concerns about price manipulation and artificial price movements. Investors should exercise caution and avoid the stock until further clarity is provided.

References:
[1] https://beincrypto.com/myx-price-explosive-rally-or-manipulation/