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
Faux Man U token pumps after Elon Musk’s tweet
To make clear, MUFC shouldn’t be an official Manchester United crypto token. It got here to life in August 2021 after a workforce of programmers, who’re mentioned to be hardcore Manchester United followers, falsely claimed that holding MUFC would give buye affect on the soccer membership’s choices.
The workforce later performed an “airdrop” spherical of 10,000,000,000 MUFC in November 2021, promising to supply 10,000 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 venture turned out to be vaporware, finally 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, this can be 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 property 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 associate, whose market valuation surged by $138.85 million.
Even Manchester Metropolis’s official crypto token, CITY, popped larger by almost 14% to achieve $7 per piece after Musk’s tweet, regardless of Manchester Metropolis being a special soccer membership.
Alternatively, MUFC surged by over 3,000% hours after Musk’s tweet about shopping for Manchester United, in line with knowledge fetched by CoinPaprika.com.
“Manchester United fan token” has zero liquidity
Nonetheless, the MUFC rally seems to be value manipulation resulting from extraordinarily poor liquidity and quantity.
Notably, within the final 24 hours, MUFC had been buying and selling solely towards two crypto property: 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, in line with knowledge from PancakeSwap, a decentralized change.
In the meantime, the web quantity that backed MUFC’s 3,000% rally was roughly $39,000 within the final 24 hours, suggesting fewer merchants behind the foremost upside transfer.
Thus, a small variety of speculators possible 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 fee 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 sturdy affect on the crypto market, particularly on memecoins like Dogecoin.
The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you need to conduct your individual analysis when making a choice.
