Trading anomalies suggest market manipulation
A recent analysis by Rena Labs and Insider.Cash has uncovered significant irregularities in MYX token trading activity. The report examined over 9,200 minute-by-minute data points between September 9 and this Monday, identifying 249 trading anomalies across multiple market dimensions. The findings point toward potential market manipulation rather than organic trading behavior.
Researchers found that liquidity anomalies on the Gate exchange surged by 433% on September 9 alone. There were 32 separate illiquidity events recorded on Sunday and Monday, which typically signals either intentional market manipulation or the departure of market makers who normally provide stability during volatile periods.
Contradictory trading patterns emerge
During periods described as “peak” illiquidity, some unusual patterns emerged. Average trade sizes actually contracted by 67%, which seems counterintuitive. Trading frequency also dropped significantly, falling from 157 trades per minute to just 86. But perhaps the most puzzling finding was the behavior of bid-ask spreads.
Typically, bid-ask spreads widen when liquidity is low and contract when markets are liquid. However, researchers observed what they called “paradoxical” behavior – spreads actually contracted to 8.2% on Monday from 15.8% on September 9, despite the apparent illiquidity.
Statistical improbability of organic activity
Spokespersons from Rena Labs indicated that the probability of all these anomalies occurring simultaneously across four market dimensions was less than 0.001%. They described the likelihood of this being organic trading activity as “a mathematical impossibility.” This suggests coordinated activity rather than natural market forces.
Meanwhile, separate concerns have emerged about the MYX token airdrop. Blockchain analytics platform Bubblemaps claimed the airdrop may have been subject to what they called the largest Sybil attack in crypto history. They identified one entity controlling 100 newly funded wallets that claimed over 9.8 million MYX tokens, resulting in approximately $170 million in profits.
Cointelegraph attempted to contact MYX Finance for comment but did not receive a response by publication time. The combination of trading anomalies and airdrop concerns paints a concerning picture for the token’s market activity. These findings highlight the ongoing challenges in detecting and preventing market manipulation in decentralized finance ecosystems.
