Investors have accused a former Google employee and YouTube user with over 1.1 million subscribers of implementing a “pump and dump” scheme through the Uniswap decentralized exchange.
Patrick Shyu, aka TechLead on YouTube, launched the Million (MM) token on July 1 through a listing on the Uniswap decentralized exchange (IDO).
On the project’s website, the Million token is described as a pre-mined crypto asset with a fixed supply of 1 million tokens, backed by one US dollar for each token. According to the project’s website, despite the fact that the token is backed by $ 1 million, the “maximum value” of the cryptoasset is not limited.
At the time of launch, the price of MM was $ 1, but then the token grew almost 37 times in just three days and on July 4 it cost $ 36.87. Since then, the price has dropped 58% and was around $ 15.26 on July 6. MM’s price movement has caused community discontent. Users began to accuse TechLead of implementing the “pump and dump” scheme. DCF Twitter user GOD noted
large amounts of liquidity that were withdrawn from Uniswap to the same address that issued the MM tokens.
“Eliminating liquidity actually results in ‘selling without selling.’ That way, he doesn’t have to tell the community what he was selling while everyone was buying. He just needs to keep his original promise to keep $ 1 million in liquidity, ”DCF GOD says.
Shu answered to these accusations and stated: “This is how liquidity works in Uniswap V3, […] ranges of liquidity are being created, it is impossible to implement it in another way ”. Recall that the Uniswap exchange introduced a new version of the protocol this spring. However, another ChainlinkGod.eth 2.0 user noted that TechLead completely missed DCF’s point of view and stated:
“You created a get-rich-quick scheme to cash in on your followers. You added liquidity when the price was low, and removed it when it rallied. This is how you made the difference in USDC. ”
On July 6, Shu posted a video on YouTube in which he denied cheating investors by withdrawing liquidity from the token. However, TechLead states that MM “should not be seen as an investment,” describing the project as a “social experiment”:
“The MM token should in no way be considered an investment. This is a social experiment and really pure speculation. It’s kind of a game for us, like Dogecoin. ”
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