In a recent podcast, three co-founders of MultiversX Labs (formerly Elrond) revealed a market manipulation scheme they say was used by the FTX exchange. According to Beniamin and Lucian Mincu and Lucian Todea, FTX manipulated the #MultiversX ($EGLD ) tokens, causing wild price swings and damaging the project. FTX used techniques such as pump, farm, dump, and short, which destabilized the token prices in the early days of their launch.
In addition to MultiversX, other projects suffered, including Avalanche ($AVAX ), as industry representatives have said. #FTX , according to them, used farming mechanisms to increase profits through manipulation, which significantly harmed market participants.
Similar methods were used against other cryptocurrencies such as #Terra ($LUNA ) and #TerraUSD (UST), which also led to a market decline.
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