FTX’s Market Manipulation Tactics and Their Impact on Crypto

In a recent podcast, co-founders of a leading cryptocurrency firm revealed that the now-bankrupt FTX exchange engaged in market manipulation, harming some projects while benefiting others.

Beniamin Mincu, Lucian Mincu, and Lucian Todea discussed how FTX artificially inflated the price of MultiversX tokens before dumping and shorting them, which contributed to EGLD’s volatility and significantly impacted the project.

Lucian Mincu shared that many industry peers reported similar negative experiences with FTX, and he had not encountered anyone who had a positive opinion of the exchange or its trading firm, Alameda.

Investigations into Sam Bankman-Fried’s practices suggest that his actions may have contributed to the downfall of cryptocurrencies like TerraUSD and Terra, while benefiting FTX-connected projects.

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The podcast detailed how FTX initially drove EGLD’s price up by buying large amounts for staking on the Maiar Exchange, but later sold EGLD and shorted it, causing the price to drop from a peak of $540 to as low as $21.42.

While FTX’s manipulation contributed to MultiversX’s struggles, broader economic pressures also played a role. As discussions around a potential new bull market emerge, the podcast highlights the need for investors to learn from these past events.

Alexander Stefanov