FTX Engaged in Market Manipulation, Harming Some Projects While Benefiting Others, Podcast Reveals

In a recent podcast, co-founders of a leading cryptocurrency firm revealed that the now-bankrupt FTX exchange engaged in market manipulation

A recent podcast featured the co-founders of a major cryptocurrency firm revealing that the now-bankrupt FTX exchange engaged in market manipulation, harming some projects while favoring 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.

Moreover, 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.

The podcast went on to detail how FTX initially drove EGLD's price up by purchasing 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 highlighted the importance of investors learning from these past events.