An ex-Google tech lead and YouTuber with greater than 1.1 million subscribers has been accused of engineering a multi-million greenback “pump and dump” scheme.
Patrick Shyu, identified pseudonymously as TechLead on YouTube, launched the Million token (MM) via Preliminary Dex Providing (IDO) on main decentralized change Uniswap on July 1.
The mission’s web site describes Million as a pre-mined cryptocurrency with a hard and fast provide of a million tokens which can be backed by one USDC every per token. The web site emphasizes that regardless of solely being backed by $1 million price of stablecoins, MM has “no maximum value.”
After being priced at $1.00 on launch, MM noticed a mammoth 3,500% improve inside simply three days to hit $36.87 on July 4. The value has since crashed, declining by 58% to take a seat round $15.26 on the time of writing.
The speedy crash that adopted Million’s value excessive has led to accusations the mission is a pump and dump on Twitter, with consumer “DCF GOD” highlighting the big sums of liquidity that had been pulled from Uniswap by the identical handle that minted MM tokens.
“By removing liquidity and not selling, he’s effectively selling without ‘selling’. This way he doesn’t have to tell the community that he sold while they all bought, he just has to hold his initial promise of keeping 1m of usdc liquidity,” they argued.
Okay final tweet since I’ve of us telling me I do not know the way uniswap works
You possibly can ignore all of the liquidity stuff and simply examine balances
He has offered MM and gained $2M
— DCF GOD (@dcfgod) July 5, 2021
Shyu responded to the thread, labeling it “absolute FUD,” arguing: “this is literally how liquidity works in Uniswap V3 […] liquidity ranges are created, you literally cannot do it any other way.”
In style commentator “ChainlinkGod.eth 2.0” commented that TechLead had utterly missed DCF’s level, stating: “You’ve created a ‘get rich quick’ scheme so you can dump on your followers, you’ve added liquidity when the price is low and removed it when the price was high and profited the difference in $USDC.”
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Shyu printed a YouTube video on July 6 addressing the accusations, denying that he “rug-pulled” buyers by eradicating liquidity. Nonetheless, the YouTuber additionally emphasised that MM “should not be considered an investment,” describing the mission as a “social experiment:”
“Million tokens should not be considered an investment by any means. This is a social experiment and really pure speculation, it’s kind of a game for us to see what happens with this, kind of like Dogecoin.”