A former Google tech lead and YouTuber with more than 1.1 million subscribers has been accused of engineering a multi-million dollar “pump and dump” scheme.
Patrick Shaw, better known by his YouTube pseudonym TechLead, launched the Million Token (MM) via a DEX initial offering on the leading decentralized platform Uniswap on Thursday.
The Million Project website describes it as a pre-mined cryptocurrency with a fixed supply of one million tokens backed by one US dollar (USDC) per token. The website asserts that while it is only backed by $1 million worth of stablecoins, MM has no “maximum value.”
Priced at $1.00 at launch, MM saw a massive 3,500% increase in just three days to $36.87 on Sunday. The price has since collapsed, dropping 58% to close to $15.26 at the time of writing.
The immediate crash that followed the Million price hike led to accusations that the project is a pump and dump on Twitter, with DCF user GOD Highlight Large amounts of cash were withdrawn from Uniswap with the same address that minted the MM tokens.
“By removing the liquidity and not selling, he is actually selling without ‘selling.’ That way he doesn’t have to tell the community he sold while they all bought, he just has to stick to his initial promise to maintain $1 million in liquidity,” they argued.
Well, last tweet since some people told me I don’t know how uniswap works
You can ignore all the liquidity items and only compare the balances
He sold MM and won $2 million
– DCF GOD (dcfgod) 5 July 2021
what replied to the thread, describing it as “absolute FUD,” arguing, “This is how liquidity works in Uniswap V3.” […] Liquidity ranges are generated, and you can’t do that any other way.”
Famous Commentator ChainlinkGod.eth 2.0.2 Update hung That TechLead completely missed the DCF point, saying, “I created a ‘get-rich-quick’ scheme so you can flood your followers, I added liquidity when the price was low and removed it when the price was high and profitable difference in USD.”
Related: CoinMarketCap Launches Ethereum Token Swaps Powered by Uniswap
Shaw posted a video on YouTube on Tuesday addressing the accusations, denying that he “attracted” investors by withdrawing liquidity. However, the YouTuber also emphasized that MM “should not be considered an investment”, describing the project as a “social experiment”:
A million tokens should not be considered an investment in any way. This is really a social experiment and pure speculation. It’s a game for us to figure out what’s going on with this, sort of like Dogecoin.”