BitMax Exchange delists DEEP token after a pump and dump accusations

Even though CoinGecko’s Bobby Ong believes that IEO is a short-lived term, a recent study highlighted that the craze for ICOs has sobered down as the focus has shifted to IEOs. Several popular cryptocurrency exchanges including Binance and BitPanda have carried out the same. Similar to Binance’s initial exchange offerings [IEO] platform, Binance Launchpad. Cryptocurrency exchange BitMax had launched its own IEO platform in 2018. However, it has now come under criticism from the CEO of Lunar Digital Assets, Han Yoon, who recently published a blog post alleging that BitMax has been carrying out illegal pump and dump schemes, while also duping several IEO projects.

Yoon further wrote that BitMax Exchange market makers were focused on pumping up the prices by purchasing tokens, instead of presenting liquidity to IEO projects. He highlighted the same by considering blockchain-based project DeepCloud AI’s DEEP token, where the exchange’s market maker was artificially used to pump the price of the DEEP token. Further, he went on to reveal several other doings of the market makers as he said,

“In fact, BitMax Exchange “market makers” managed to burn through $1.275mil in liquidity funds in a matter of weeks. Every competent market maker I’ve spoken to nearly has a heart attack when they hear this.”

Along with DeepCloud AI, DUO Network, Ferrum Network, and DOS Network also witnessed a plummet in their prices due to market-making. The lack of buy support would “violently” push the value of tokens down, he added.