MYX Finance Price Surge: Is a Crash Imminent?
MYX Finance Rally Sparks Investor Caution
The native token of MYX Finance, MYX, has experienced a dramatic surge, gaining nearly 279% in the last 24 hours. While impressive, this rally has fueled concerns among investors, drawing parallels to the previous collapse of MANTRA (OM).
Echoes of MANTRA (OM)?
The rapid ascent of MYX has prompted analysts to question the sustainability of its value. Earlier in August, the token saw a 1,957% pump before increased volatility. The project's market capitalization now exceeds $2 billion, while its total value locked (TVL) sits at just $32 million, according to DefiLlama data. This disparity suggests potential overvaluation driven by FOMO.
One analyst stated, "MYX Finance has gone off the charts… Looks like a clear case of manipulation when a project with little / no activity is sitting at a market cap of $2.5 billion."
Manipulation Allegations
Adding to the unease, some market observers suggest MYX's trading patterns mirror those seen before MANTRA (OM)'s decline. An analyst pointed out the similarity to OM's rally, where sharp gains propelled it into the top 50 before a steep fall.
Another analyst suggests that the team is reclaiming airdropped tokens, driving prices up to force accumulation, then selling at the top to shake out retail before buying back at lower levels. The analyst suggested that the ultimate goal is to dominate supply and profit from volatility once contracts are listed, turning futures trading into their real revenue source.
Volume Powerhouse or Red Flag?
Despite skepticism, MYX Finance recently received the ‘Volume Powerhouse’ title at the BNB Chain Awards. This has attracted further scrutiny. Perpetual futures (Perp) volume data from DefiLlama indicates a significant shift in MYX’s trading activity.
Since April, most Perp volume has moved to the BNB Chain, averaging around $200-$300 million daily, compared to its earlier focus on the Arbitrum (ARB) network.
Analyst Jordi Alexander argued that MYX highlights deep flaws in the perpetual futures market. Despite lacking Tier 1 or Tier 2 listings, the token reached a $10 billion FDV, generating $200 million in open interest on Binance, where traders paid negative funding rates.
Alexander noted that while Binance collected tens of millions in fees from $9 billion in trading volume, customers faced steep losses. He also warned that perpetual contracts are unsound without sufficient spot liquidity.
Given these concerns, investors are advised to exercise caution and conduct thorough due diligence before engaging with MYX Finance. Projects like Codeum offer smart contract auditing services which help ensure project integrity and security.