Analysis: Mantra and market makers use data aggregator verification vulnerabilities to falsely increase OM token liquidity
On April 18, in the latest issue of "The Picking Block" podcast discussion, it was alleged that Mantra and its associated market makers used vulnerabilities in the data aggregator's self-reporting system to manipulate OM token liquidity indicators. They distort the circulation supply and transaction volume, creating the illusion of market activity. The Mantra team works with market makers to cycle token simulated trading volume between controlled addresses and exchanges, exaggerating data without a large number of natural participation. Chain observers say that the truly liquid supply of OM tokens is less than 1%, but it seems to be among the top 25 assets in market value. The strategy exploits vulnerabilities in the CoinGecko and CoinMarketCap verification processes, which rely on self-reported data by the project team to cross-check with exchange listing information and superficial blockchain analysis. Those with ulterior motives can allocate tokens to market makers and plan seemingly natural trading activities to circumvent inspections, even if no retail investors participate. When a large OM customer sold, artificial liquidity collapsed and the price fell by 90% in 90 minutes. The incident wiped billions of dollars off the market value, exposing the deep vulnerability of the asset's trading.
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