Crypto Market Manipulation: The MYX to COAI Playbook - Whales vs. Retail

Article Summary

• Case studies of MYX, AIA, and COAI: How these tokens were exploited to generate massive profits for manipulators.
• Manipulation mechanics: Focusing on supply control and price manipulation to create buy or sell pressure.
• The role of trading platforms like Binance Alpha: How they exacerbate the problem by encouraging speculation.
• Advice for investors: How to avoid falling victim to these practices and trade cautiously.

Introduction

Since September, the crypto world has witnessed a series of brutal exploitations, where whales and projects collaborated to extract funds from retail investors. Despite clear signs of manipulation, many still seek the next cryptocurrency to multiply a hundredfold, fearing missing out on a quick fortune.

The Evolution of the 'Exploitation Template' from MYX to COAI

The story began with MYX.Finance, a decentralized derivatives exchange based on the Arbitrum chain. Its token, MYX, was listed on Binance Alpha in early September, with an initial market cap of around $100 million USD, with relatively weak trading volume. In early September, the price of MYX suddenly increased, and its market value quickly rose to over $3 billion USD, then entered a high volatility phase, accompanied by sharp price fluctuations during the day. According to coinglass data, the price of MYX rose by 298.18% in one day on September 18, with an intraday fluctuation range of up to 317.11%, where the losses on short trades reached $52.09 million USD, and the losses on long trades reached $10.51 million USD. In early October, the price entered a sharp decline, and although there were short-term rebounds during this period, it soon resumed its decline. After that, the price of MYX gradually decreased, and its market value has currently returned to around $500 million USD and stabilized at this level. Immediately following, the first project to follow suit, DeAgentAI (AIA), quickly emerged, attracting market attention with an AI agent narrative. In early October, the price more than doubled, then the MYX set reappeared, with retail investors being exploited through numerous sharp ups and downs. If AIA is a lightweight version of the MYX model, then ChainOpera (COAI) takes this model to the extreme. On September 25, COAI was listed on Binance Alpha and the futures platform, with an initial market cap of only $15 million USD. Within a few weeks, the price rose hundreds of times, and the market value soared to over $8 billion USD, then the price fluctuated sharply between $5 USD and $25 USD. These large fluctuations and sharp declines in price can be said to be one of the most eye-catching "demon" coins this year. Many traders point out that the top 10 holders of COAI control 96.5%-97% of the circulating supply. Market makers use price pulls (such as the sharp increase of 81% on October 15) to attract retail investors to follow, and then dump the stock (such as the sharp drop of 58% on October 25), and retail investors can do nothing about it.

Conclusion

In conclusion, investors should exercise extreme caution and avoid participating in projects that show clear signs of manipulation. It is best to focus on projects with a strong foundation and active community rather than chasing quick profits.