Buying and selling of the MYX token, the cryptocurrency of the MYX decentralized trade (DEX), featured hallmarks of market manipulation, in accordance with a report from AI infrastructure firm Rena Labs and market intelligence firm Insider.Money.
The report analyzed over 9,200 minute-by-minute knowledge factors between Sept. 9 and Monday, which discovered 249 buying and selling anomalies relating to illiquidity, quantity spikes, worth ratios and commerce depth.
The researchers discovered that MYX liquidity anomalies on the Gate trade spiked by 433% on Sept. 9, with a complete of 32 illiquidity occasions on Sunday and Monday, signaling both intentional market manipulation or the exit of market makers, which provide liquidity and cushion markets throughout occasions of utmost stress.
MYX token common commerce sizes contracted by 67% in periods of “peak” illiquidity, and buying and selling frequency additionally fell by 45% through the noticed buying and selling interval, falling to 86 trades per minute to 157, whereas bid-ask spreads contracted to eight.2% on Monday from 15.8% on Sept. 9.
Associated: What is MYX Finance and why is it up 1,400% in seven days?
Bid-ask spreads, the distinction between purchase and promote costs, usually widen throughout heightened illiquidity and contract when liquidity is excessive. The “paradoxical” habits of the bid-ask spreads throughout peak illiquidity was additionally a crimson flag for the researchers. They wrote:
“The temporal synchronization of those excessive deviations throughout in any other case unbiased market microstructure metrics strongly suggests coordinated, multi-vector manipulation methods, fairly than natural buying and selling exercise pushed by elementary information or pure market forces.”
Spokespersons from Rena Labs instructed Cointelegraph that the chance of all of the anomalies throughout all 4 market dimensions — illiquidity, quantity spikes, worth ratios and commerce depth — occurring concurrently was under 0.001%, successfully making the chance of natural buying and selling exercise “a mathematical impossibility.”
Cointelegraph reached out to MYX Finance however was not in a position to obtain a response by the point of publication.
BubbleMaps sounds the alarm on MYX token airdrop
On Sept. 9, Blockchain analytics platform Bubblemaps claimed that the latest MYX token airdrop might have been the topic of the largest Sybil attack in crypto history.
A Sybil assault is a sort of malicious exercise wherein the menace actor creates a number of accounts which might be all managed by a single entity, giving the impression of natural community exercise.
Bubblemaps stated that one entity, controlling 100 newly funded wallets, claimed over 9.8 million MYX tokens and made a $170 million revenue from the token airdrop.
Journal: What do crypto market makers actually do? Liquidity, or manipulation
