Trading anomalies suggest market manipulation
A new analysis from Rena Labs and Insider.Cash suggests that trading activity around the MYX token displayed clear signs of potential market manipulation. The report examined over 9,200 minute-by-minute data points between September 9th and this past Monday, identifying 249 distinct trading anomalies across multiple dimensions.
The researchers found particularly concerning patterns in liquidity behavior. On September 9th, MYX liquidity anomalies on the Gate exchange surged by 433%, with a total of 32 illiquidity events occurring just on Sunday and Monday. This pattern could indicate either intentional market manipulation or the sudden departure of market makers who typically provide stability during volatile periods.
Contradictory trading patterns emerge
What caught the researchers’ attention were the contradictory signals in the market data. During periods they labeled as “peak” illiquidity, MYX token average trade sizes actually contracted by 67%. Trading frequency also dropped significantly, falling from 157 trades per minute to just 86.
Perhaps most telling was the behavior of bid-ask spreads. Typically, these spreads widen during illiquid conditions as market participants demand higher premiums for taking risk. But in this case, the spreads actually contracted to 8.2% on Monday from 15.8% on September 9th—a pattern the researchers called “paradoxical” and a clear red flag.
Statistical improbability points to manipulation
According to spokespersons from Rena Labs, the probability of all these anomalies occurring simultaneously across four different market dimensions—illiquidity, volume spikes, price ratios, and trade intensity—was mathematically minuscule. They put the chances at below 0.001%, effectively making organic trading activity a statistical impossibility.
The report comes amid other concerns about MYX token distribution. Blockchain analytics platform Bubblemaps recently raised alarms about what they called potentially “the largest Sybil attack in crypto history” involving the MYX token airdrop. They identified one entity controlling 100 newly funded wallets that claimed over 9.8 million MYX tokens, resulting in approximately $170 million in profits.
MYX Finance, the decentralized exchange behind the token, did not respond to requests for comment by the time of publication. The combination of trading anomalies and distribution concerns paints a concerning picture for market participants who might be considering involvement with this token.
I think it’s worth noting that while statistical analysis can identify patterns that suggest manipulation, it doesn’t necessarily prove intent. Market conditions can sometimes create unusual patterns that look suspicious but might have other explanations. Still, when multiple independent analysts raise similar concerns, it’s probably wise to exercise caution.
