According to a shocking revelation by Lookonchain, there was an attempt to manipulate the market price of the SushiSwap Token. So, they made this information on Twitter (now X) with regard to a suspicion of price manipulation. Let’s dive deep into the meaning of token price manipulation and the recent occurrence on SushiSwap.
What is Crypto Token Manipulation?
- Crypto token price manipulation is when someone or a group of people attempt to artificially influence an asset’s price or the market’s behavior. So, what these people are basically trying to achieve is to create an illusion in the market so that they can profit from the aftermath. For instance, some crypto projects create fake news and hype so they can increase the price of their token. So, when the price increases, they take profit and dump the token.
- Market manipulation comes in different ways. However, the most prominent is the pump and dump schemes. So, the others used by scammers are stop hunting, whale spoofing, and wash trading. In most cases, this market manipulation makes other traders lose large amounts of money.
SushiSwap Token Suspected for Market Manipulation
- According to recent data from Lookonchain, there are accusations that there are market manipulations ongoing. So, the crypto token receiving these accusations from Lookonchain is the SushiSwap Token. At the time when Lookonchain made their data and claims public, the price of SushiSwap was up by over 16%.
- There were some transactions in the market, confirming the plot of manipulating the market. So, one of them was the trader buying $SUSHI on DEXs and depositing $USDC to perpetual exchanges such as DYDX.
More Details About this SushiSwap Token Manipulation
- The major strategy of this market manipulator was going long on the SushiSwap token. So, there was a series of congested transactions, forcing the market to look like there were many long positions on this token. This market manipulator was moving large amounts of SushiSwap tokens from DEXs to perpetual exchanges with multiple addresses.
- According to more details from Lookonchain, Wallet”0xCCb6 was the one behind this market manipulation. So, the major intention of the person behind this wallet was to create delusion in the market. So, there was a splurge of more than $640,000 on USDC to buy more SushiSwap tokens. At the time of making their report, Lookonchain said this trader made a purchase of 900,514 $SUSHI at $0.71. So, the total number of wallets in the works by this market manipulator was more than 90. So, the intention was to raise the price of the SushiSwap token so he could go long on them. To a large extent, this plan was quite a success.
Market manipulation is something that is very real in the crypto industry. So, the same thing was happening to the SushiSwap token, according to reports from Lookonchain. This market manipulator was trying to raise the price of this token so he could go long on it.
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