Following Musk’s tweet, other Manchester United-related assets as well as Manchester City’s fan token soared in value.
The dead coin Manchester United Fan Token (MUFC), which has nothing to do with the sporting team, was brought back to life on August 17 by a single tweet from Elon Musk.
Also, I’m buying Manchester United ur welcome
— Elon Musk (@elonmusk) August 17, 2022
Fake Following Elon Musk’s tweet, Man U token spikes
To be clear, MUFC is not a digital asset associated with Manchester United. After a group of programmers, who are rumored to be ardent Manchester United supporters, mistakenly asserted that possessing MUFC would offer buye power over the football club’s actions, it was created in August 2021.
Later, in November 2021, the team carried out an “airdrop” round of 10,000,000,000 MUFC, promising to give 10,000 MUFC to users who followed its official social media platforms. The possibility of receiving free MUFC tokens fueled a price increase that reached $1.
However, the initiative ended up being a waste of time, which caused MUFC to decline by 100% after November. It was regarded as extinct until a tweet from multibillionaire entrepreneur Elon Musk on August 17 brought it back from extinction.
The CEO of Tesla later acknowledged that his tweet about buying the Manchester United football club was a “long-running joke.”
Are you serious?
— Tesla Owners Silicon Valley (@teslaownersSV) August 17, 2022
The club’s stock MANU increased 1.97% in pre-market trading, while Tezos (XTZ), the club’s official blockchain and training partner, had a market valuation jump of $138.85 million as a result of the announcement.
Musk’s tweet caused even Manchester City’s official cryptocurrency, CITY, to soar by almost 14% to $7 per piece, despite the fact that Manchester City is a distinct football club.
On the other side, data retrieved by CoinPaprika.com shows that MUFC climbed by nearly 3,00% in the hours after Musk’s tweet about purchasing Manchester United.
The liquidity of the “Manchester United fan token” is zero.
However, due to relatively low volume and liquidity, the MUFC surge appears to be a price manipulation.
Interestingly, WBNB and USDT were the only two cryptocurrencies against which MUFC had traded the previous day. According to data from PancakeSwap, a decentralized exchange, the liquidity for the WBNB/MUFC pair was only $106.84, while it was much lower for the USDT/MUFC pair at about $10.
In contrast, the net volume that supported MUFC’s 3,000% increase was just about $39,000 over the past 24 hours, indicating that fewer traders supported the significant upward movement.
As a result, a few speculators probably manipulated the token’s price by taking advantage of MUFC’s low liquidity. Uncertainty surrounds the number of traders who purchased the false upside narrative, but the likelihood that MUFC’s rate will plummet to zero is strong considering that it has already fallen by 50% from its local peak.
The incident also highlights Musk’s significant effect on the cryptocurrency industry, particularly on meme coins like Dogecoin.
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