Other Manchester United-related assets also surged following Musk’s tweet, as did Manchester City’s fan token.
The Manchester United Fan Token (MUFC) is a dead coin unrelated to the sports franchise, but a single tweet from Elon Musk was enough to revive it on August 17th.
Fake Man U tokens surge after Elon Musk tweet
For clarification, MUFC is not Manchester United’s official crypto token. It emerged in August 2021 after a team of programmers who were said to be ardent Manchester United fans falsely claimed that owning MUFC would give buyers leverage over the football club’s decisions.
Later in November 2021, the team held a 10,000,000,000 MUFC giveaway and promised to give 10,000 MUFC to users who follow their official social media addresses. The prospect of getting free MUFC tokens helped push the price up to $1.
But the project turned out to be useless, which eventually led to MUFC crashing by 100% after November. It was thought to be extinct until an Aug. 17 tweet from billionaire entrepreneur Elon Musk revived it from obscurity.
Tesla’s CEO tweeted that he was buying Manchester United Football Club, which he later admitted was “an old joke.”
However, the announcement sent Manchester United-related financial assets skyrocketing, including stakes in MANU, which surged 1.97% in pre-sales, and Tezos (XTZ), the club’s official blockchain and training partner. their market value increased by 138.85 million dollars. .
Even Manchester City’s official crypto token, CITY, surged nearly 14% to $7 apiece following Musk’s tweet, despite Manchester City being a different football club.
CITY/USD daily chart. Source: Trade View
On the other hand, hours after Musk tweeted about buying Manchester United, MUFC is up over 3,000%, according to data from CoinPaprika.com.
Price and volume of MUFC (last seven days). Source: CoinPaprika.com
Manchester United Fan Token has no liquidity
However, the MUFC rally appears to be price manipulation due to extremely low liquidity and volume.
Notably, MUFC has only traded against two crypto assets in the last 24 hours: WBNB and USDT. While WBNB/MUFC liquidity was just $106.84, USDT/MUFC liquidity was even lower, around $10, according to decentralized exchange PancakeSwap.
MUFC collects statistics as of August 17th. Source: PancakeSwap
Meanwhile, the net volume supporting MUFC’s 3,000 percent rally has hovered around $39,000 over the past 24 hours, suggesting fewer traders are behind a major bullish move.
MUFC volume record. Source: PancakeSwap
Therefore, a small number of speculators likely took advantage of MUFC’s poor liquidity to artificially pump the token. The number of traders who bought the false upstory remains unclear, but since the MUFC is already down 50% from its local high, there is a strong possibility that it will bounce back to zero.
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Meanwhile, this incident confirms Musk’s strong influence on the crypto market, especially on memcoins like Dogecoin.