Pretend Manchester United token soars 3,ok% after Elon Musk jokes about shopping for staff

Manchester United Fan Token (MUFC) is a lifeless coin and never associated to the sports activities franchise, however one Elon Musk tweet was sufficient to revive it on Aug. 17.

Additionally, I’m shopping for Manchester United ur welcome

— Elon Musk (@elonmusk) August 17, 2022

Pretend Man U token pumps after Elon Musk’s tweet

To make clear, MUFC is just not an official Manchester United crypto token. It got here to life in August 2021 after a staff of programmers, who’re stated to be hardcore Manchester United followers, falsely claimed that holding MUFC would give patrons affect on the soccer membership’s selections.

The staff later carried out an “airdrop” spherical of 10,ok,ok,ok MUFC in November 2021, promising to supply 10,ok MUFC to customers who adopted its official social media handles. The prospects of getting free MUFC tokens helped its value rally to as excessive as $1.

However the challenge turned out to be vaporware, ultimately main MUFC down by 100% after November. It was deemed extinct till a tweet from billionaire entrepreneur Elon Musk on Aug. 17 revived it from oblivion.

The Tesla CEO tweeted that he would purchase the Manchester United soccer membership, which he later admitted was a “long-running joke.”

No, it is a long-running joke on Twitter. I’m not shopping for any sports activities groups.

— Elon Musk (@elonmusk) August 17, 2022

Nonetheless, the message despatched the monetary belongings associated to Manchester United hovering, together with its inventory MANU, which rose 1.97% in pre-market buying and selling, and Tezos (XTZ), the membership’s official blockchain and coaching accomplice, whose market valuation surged by $138.85 million.

Even Manchester Metropolis’s official crypto token, CITY, popped larger by practically 14% to succeed in $7 per piece after Musk’s tweet, regardless of Manchester Metropolis being a unique soccer membership.

Then again, MUFC surged by over 3,ok% hours after Musk’s tweet about shopping for Manchester United, based on knowledge fetched by CoinPaprika.com.

“Manchester United fan token” has zero liquidity

Nevertheless, the MUFC rally seems to be value manipulation on account of extraordinarily poor liquidity and quantity. 

Notably, within the final 24 hours, MUFC had been buying and selling solely in opposition to two crypto belongings: WBNB and USDT. Whereas the liquidity for the WBNB/MUFC pair was mere $106.84, it was even decrease for the USDT/MUFC pair at round $10, based on knowledge from PancakeSwap, a decentralized alternate.

In the meantime, the web quantity that backed MUFC’s 3,ok% rally was roughly $39,ok within the final 24 hours, suggesting fewer merchants behind the most important upside transfer.

Thus, a small variety of speculators seemingly used MUFC’s poor liquidity to artificially pump the token. The variety of merchants who purchased the false upside narrative stays unclear, however given thatMUFC has already dropped by 50% from its native prime, the prospect that its charge would return to zero is excessive.

Associated: Crypto scams fall 65% after gullible noobs exit the market: Chainalysis

In the meantime, the incident reasserts Musk’s robust affect on the crypto market, particularly on memecoins like Dogecoin.

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