Odaily News Kain Warwick, founder of Synthetix and Infinex, published an article on the X platform to expose the market manipulation methods of market makers. He said that in the IC0 era, if the project party did not reach an agreement with multiple "market makers", it would be almost impossible to complete financing, and the monthly cost was as high as 50,000 to 300,000 US dollars. Today, these market-making agreements have evolved into option structures. Some market makers manipulate the market through a low float model, shorting at the highest point of TGE, covering at the bottom, and exercising the option to smash the market after pulling the market again. SBF's previous use of a low float model further fueled this arbitrage strategy.
Recently, a new trick is for project owners to sell tokens to liquidity funds at a discount before TGE, and instruct market makers to sell directly after low liquidity. DWF Labs used a similar method to operate Synthetix, first buying coins from the treasury to pull the market, and then dumping the market to cash out. Project owners can extract value from token buyers in many ways. If you see a large amount of tokens being transferred to a "market maker", be extra vigilant, they may just treat you as exit liquidity. "