🚀 Understanding Market Manipulation in Crypto: The FTX Impact
In a captivating podcast discussion, leaders from one of the recognized cryptocurrency entities revealed unsettling news regarding manipulative practices within the industry, specifically linked to the FTX exchange. This information comes during a time where the full implications of FTX’s collapse are still unfolding, with allegations highlighting harmful market tactics that favored certain projects at the detriment of others. The revelations concerning FTX have significant implications for the crypto community, offering insights into the darker sides of trading and manipulation.
🔍 Insights from the Full Shard Podcast
On October 12, a notable episode of the Full Shard Podcast was released, featuring the co-founders of MultiversX Labs, previously known as Elrond. Beginning around the 55-minute mark, Beniamin Mincu, Lucian Mincu, and Lucian Todea delved into their encounters with FTX’s market strategies. They shared firsthand accounts of how actions from Sam Bankman-Fried’s exchange involved substantial manipulation, which severely impacted the price fluctuations of their tokens.
⚠️ Other Cryptocurrencies Affected by FTX’s Strategies
Lucian Mincu indicated that discussions with various founders and executives in the crypto space revealed a common thread of adverse experiences linked to FTX’s operations. For instance, he noted that Avalanche (AVAX) was also subject to exploitation under similar tactics. He highlighted a concerning theme of distrust surrounding FTX.
“In my experience, individuals often lend support to one another. However, FTX’s reputation remains tarnished in these circles, as I have yet to hear a single person—builder or founder—speak positively about their interactions with Alameda or FTX.”
— Lucian Mincu on the Full Shard Podcast
Further elaborating, Mincu expressed his disbelief at the absence of supportive narratives from fellow builders regarding their dealings with FTX, emphasizing the toxicity that seems prevalent in those discussions.
📈 FTX’s Manipulative Practices: The Cycle of Pumping and Dumping
During the podcast, Beniamin Mincu articulated his observations regarding FTX’s reckless exploitation of ecosystem incentives meant to foster growth and participation. He pointed out how these unforeseen behaviors could lead to harmful manipulation across the market.
“The measure of damage done by exploiting incentives associated with farming is significant—it exists on a spectrum that extends to depriving individuals of their investments.”
— Beniamin Mincu on the Full Shard Podcast
Mincu recalled an instance where he witnessed FTX holding between $100 million and $200 million in positions, with a strong implication that their actions were far more calculated than anyone could have predicted.
🔗 Unveiling the Impact on MultiversX (EGLD)
Mincu and Todea went into details regarding how FTX’s manipulation negatively affected MultiversX (EGLD). They discussed how FTX sought to capitalize on MultiversX at multiple phases, contributing to the volatile behavior of EGLD, which peaked at approximately $540 due to FTX’s initial buying spree of EGLD for staking on the newly launched Maiar Exchange. However, this was merely the outset.
Once FTX acquired significant EGLD amounts, they further manipulated the market by converting airdrop rewards paid in MEX tokens back into EGLD, proceeding to sell those tokens on the open market.
“Large investors entered the fray, initially acquiring EGLD to farm on the DEX and subsequently converting MEX rewards instantly, leading to a soaring price of EGLD and a decline in MEX’s performance.”
— DavyCrypto, DeFi Enthusiast
This predatory cycle saw substantial pressure applied to EGLD with short positions further driving down its value, resulting in a catastrophic fall from its previous highs, plummeting to around $37.69 by June and even lower thereafter.
📊 Reflecting on the Past and Looking Ahead
The latest discussions have unveiled important takeaways about the events that may have contributed to the struggles faced by MultiversX over recent years. Analysts regularly commend its technological offerings, often referring to it as the pinnacle of crypto advancements. Despite this, it’s clear that FTX’s influence alone did not instigate the downturn; other market dynamics must also be taken into account.
When considering the broader context, it’s noted that FTX and Alameda had substantial stakes in Solana (SOL), making them a key component in its prior market trajectory. These insights, shared during the podcast, are crucial as crypto enthusiasts sift through past mistakes to shape future actions.
🔥 Hot Take: Navigating the Future of Crypto
As you absorb these insights, the podcast serves as an important resource for understanding the impact of past mistakes while simultaneously preparing for potential market developments. Many analysts hint that a new bullish trend may be on the horizon and that investors ought to remain observant as emerging trends unfold. Equip yourself with lessons learned, as they may prove invaluable as crypto communities head toward new heights.
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