An ex-Google tech lead and YouTuber with greater than 1.1 million subscribers has been accused of engineering a multi-million-dollar “pump-and-dump” scheme.
Patrick Shyu, identified pseudonymously as TechLead on YouTube, launched the Million token (MM) by way of an preliminary DEX providing on main decentralized change Uniswap on Thursday.
The mission’s web site describes Million as a pre-mined cryptocurrency with a set provide of 1 million tokens which can be backed by one USD Coin (USDC) every per token. The web site emphasizes that regardless of solely being backed by $1 million price of stablecoins, MM has “no most worth.”
After being priced at $1.00 on launch, MM noticed a mammoth 3,500% improve inside simply three days to hit $36.87 on Sunday. The worth has since crashed, declining by 58% to sit down round $15.26 on the time of writing.
The rapid crash that adopted Million’s worth excessive has led to accusations the mission is a pump-and-dump on Twitter, with person DCF GOD highlighting the big sums of liquidity that had been pulled from Uniswap by the identical deal with that minted MM tokens.
“By eradicating liquidity and never promoting, he’s successfully promoting with out ‘promoting.’ This manner he doesn’t have to inform the group that he offered whereas all of them purchased, he simply has to carry his preliminary promise of retaining 1m of usdc liquidity,” they argued.
Okay final tweet since I’ve of us telling me I do not understand how uniswap works
You’ll be able to 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, “That is actually how liquidity works in Uniswap V3 […] liquidity ranges are created, you actually can’t do it another approach.”
Widespread commentator ChainlinkGod.eth 2.0 commented that TechLead had fully missed DCF’s level, stating, “You’ve created a ‘get wealthy fast’ scheme so you may dump in your followers, you’ve added liquidity when the value is low and eliminated it when the value was excessive and profited the distinction in $USDC.”
Shyu printed a YouTube video on Tuesday addressing the accusations, denying that he “rug-pulled” traders by eradicating liquidity. Nonetheless, the YouTuber additionally emphasised that MM “shouldn’t be thought of an funding,” describing the mission as a “social experiment”:
“Million tokens shouldn’t be thought of an funding by any means. It is a social experiment and actually pure hypothesis. It’s sort of a recreation for us to see what occurs with this, sort of like Dogecoin.”