Moonshot price increase on MEXC was so fake

[Oshosondy]

MEXC notified me of a shit coin that had a price surge just few minutes ago. I decided to take a look at the coin, but I confirm it also on another exchange, but it was a different story.

Take a look at what I saw on the two exchanges:



On the other exchange, the coin price did not surge up, but MEXC indicated that it increased from $7.7 to over $68 which is not true because the coin has been around $68 for a long time. I confirmed this also on some other sites.

Is there something I do not understand about this?

I have not seen this before on exchanges. There could be price manipulation but in a way everything will be corrected back. This one is just very different manipulation or something happened to MEXC moonshot chart.

[logfiles]

Not sure if it was manipulation but this is sometimes a problem with Pre-IPO tokens especially perpetual contracts. The value is mostly speculative because the token has not yet been released in circulation.
MEXC usually rushes to list such tokens and they will start trading at weird prices and when the same Pre IPO token is listed on lets say Binance, the price on MEXC can surge to march up the price on bigger exchanges. Binance and Kucoin listed that particular contract recently. It's safe to say, MEXC's price was way off. Maybe someone took long to find an arbitrage opportunity.

[hugeblack]

Do you mean ----> https://www.mexc.com/futures/KIMISTOCK_USDT?
If so, MOONSHOTUSDT (originally launched as KIMIUSDT) is a MEXC Pre-IPO perpetual futures contract; consequently, the price represents a synthetic, speculation-based index.
In general, low liquidity can often lead to price discrepancies of more than 10% between exchanges.

[albon]

This has been going on for years, and they list scam coins and high risk projects, and I’ve seen coins before go up by a million percent or more, only to turn out to be nothing more than traps designed to attract investors.

This platform also lists different versions of well-known coins, simply exploiting their names and tickers to deceive investors. These coins quickly end up draining investors, and sooner or later, the platform will delist them, but only after investors have already been scammed.

They seem to only care about collecting listing fees from these shady projects, without caring about the risks to their users.

This is one of the worst platforms I’ve ever used.

[TastyChillySauce00]

You're basically trading a pre-IPO perpetual contract that tracks nothing and backed by nothing because it's pre-IPO which implies that the stock isn't publicly listed yet so if a synthetic derivative supposed to track stock price and yet the stock hasn't publicly listed yet, what exactly it's tracking?

It's not even an SPV therefore the price can be anything. It'd be best if you can wait for the tokenized stock that actually get backed by the stock after the IPO which is expected to happen around Q4 of this year to Q1 of next year. These synthetic derivative are for people who speculate and the liquidity is not even high, it's very vulnerable to price manipulation and squeezes, definitely not recommended because your odd of losing money is high.