Recent analysis shows MYX token volumes hit $12 billion in a single day on futures. This surge propelled its fully diluted valuation to $18 billion amid suspicions in the cefi market. Experts now question if genuine demand drove the activity.
Unpacking the Manipulation Report
A joint report from Rena Labs and Insider.Cash examined over 9,200 data points on MYX trading. It identified 249 anomalies across illiquidity, volume, ratios, and trade intensity.
The study concluded coordinated strategies likely caused these deviations. Organic trading became a mathematical impossibility with odds below 0.001%.
According to the report, liquidity anomalies on Gate exchange spiked 433% on September 9. This included 32 illiquidity events over two days.
During peak illiquidity, average trade sizes shrank 67%. trading frequency also fell 45%, from 157 to 86 trades per minute.
Bid-ask spreads paradoxically contracted to 8.2% from 15.8%. Such behavior flags potential manipulation in cefi platforms.
Rena Labs spokespersons stated the synchronization of anomalies suggests multi-vector strategies. They ruled out natural market forces.
Sybil Attack Allegations
Blockchain firm Bubblemaps alleged a massive Sybil attack on MYX's airdrop. One entity used 100 wallets to claim 9.8 million tokens.
This haul now values at $170 million. The wallets received funds via OKX just before the airdrop.
Bubblemaps reported no prior activity in these addresses. This points to insider control simulating organic participation.
MYX Finance denied fraud claims in a statement. They attributed growth to legitimate trading but offered vague details.
According to BeInCrypto, analysts cite thin liquidity amplifying rallies. Whale actions triggered $48.7 million in short liquidations.
market Impact and Trends
In the broader cefi market, perpetual futures enable such pumps without spot liquidity. Platforms like host high open interest, reaching $200 million for MYX.
Traders face negative funding rates up to 2% hourly. This squeezes shorts while insiders potentially corner supply.
Coin Edition noted MYX's 241% surge to $6.71 amid warnings. On-chain data shows concentrated holdings driving volatility.
Similar patterns appear in past tokens with cornered supplies. These often end in sharp 80% drops once manipulation ceases.
Expert Insights from Social Media
Community analysts highlight risks in cefi trading. High-engagement discussions reveal patterns of involvement.
Another trader warned of insider plays inflating valuations. Dead GitHub and low activity contrast the market cap.
Implications for CeFi Investors
These events underscore vulnerabilities in cefi markets. Manipulation erodes trust and exposes traders to sudden reversals.
Investors should monitor funding rates and liquidity metrics. Diversifying beyond perps reduces exposure to orchestrated pumps.
Regulators may increase scrutiny on cefi platforms hosting such tokens. Enhanced transparency could mitigate future risks.
The MYX case highlights how cefi intersects with decentralized projects. It affects market integrity and investor confidence.
This report's findings emphasize the need for due diligence in volatile cefi environments. Understanding anomalies helps navigate manipulated markets effectively.
