A price increase of over 3,500 percent, followed by a quick exit? That smells like pump and dump. But the million token inventor denies this.
A former Google technician and YouTuber with more than 1.1 million subscribers is accused of developing a multi-million dollar “pump and dump” system. Patrick Shyu, who is on YouTube under the pseudonym TechLead known, launched the so-called Million-Token (MM) via Initial Dex Offering (IDO) on the leading decentralized exchange Uniswap on July 1st. The Project website describes the million token as a cryptocurrency with a specified reserve limit of exactly one million. Each of the tokens is secured by the stablecoin USDC. Shyu emphasizes that MM has “no maximum value” despite the fact that the token is only covered by stablecoins worth one million US dollars.
As its popularity and usage increase by a million, the value may rise above the initial peg value of USDC 1. If z. For example, if 1,000 people want 1,000 MM each, the fair market value is exactly 1 USDC. But if 2,000 people want 1,000 MM each, the market value rises to 2 USDC
so his simple calculation.
Million token price rose more than 3,500 percent
However, a slightly different scenario occurred after the start of trading. After initially priced at USD 1.00C, MM rose to a whopping $ 36.87 in just three days. The price has since crashed again and is included at the time of this writing $ 14.68. In view of this, the “pump and dump” suspicion is not exactly absurd. A Twitter user named “DCF GOD”Believes that we can provide solid evidence of this. He found out that large sums of liquidity from the same address that minted the MM tokens on Uniswap – i.e. by Patrick Shyu himself.
This is a very typical procedure for “pump and dump” systems. When the price is low, liquidity is added, which is then withdrawn again when many investors enter and the price has risen. With the difference, a profit can be achieved without it being directly noticed as a sale. In his latest video on July 6, Shyu denied these allegations. However, he also evades them to a certain extent by emphasizing that MM should “not be viewed as an investment”, but rather as a “social experiment”. Nonetheless, right from the start, he proudly mentions the market capitalization of USD 40 million that he has achieved in the meantime. Then again he calls the million token “really pure speculation, it’s kind of a game for us to see what happens to it, something like Dogecoin.” What happened to Dogecoin, although its inventor repeatedly emphasized that he only wanted to target the Bitcoin and crypto space with Memecoin, is well known: DOGE is one of the largest crypto currencies in the world today.