Backpack Exchange, founded by former FTX executive, has recently implemented an account trading volume points mechanism. The more transactions users make, the more points they can earn. It is highly likely that they will receive more rewards in the future. In this context, there has been a surge in volume manipulation activities within the community. In response, Backpack’s official Chinese version of Twitter issued a warning today, stating that volume manipulation behavior will be strictly monitored.
Backpack Exchange, led by former FTX executive, began operating in the fourth quarter of last year. At the beginning of its launch, in order to attract users, Backpack collaborated with the Solana ecosystem project, Pyth Network, and conducted its first airdrop activity in November last year.
Users only needed to register an account on Backpack Exchange, complete the KYC process, and deposit SOL tokens within a specified time for staking and trading to receive PYTH token rewards. As a result, the activity attracted over 100,000 participants, and many users reported substantial profits from the airdrop. Some even claimed that they had incurred $300 in losses through SOL trading, but ultimately received PYTH tokens worth $5000.
Backpack’s new activity triggers a surge in trading volume manipulation. On the 12th, Backpack announced the launch of a new activity. Starting from 7 am on the 14th, account trading volume points mechanism will be activated. The more transactions users make, the more points they can earn. The ranking of the points mechanism will serve as important reference data for future large-scale marketing activities, such as airdrop eligibility or token listing projects like Launch Pool.
As a result, after the launch of this activity, many users on Twitter started using API automated scripts to manipulate trading volume in order to obtain more points. The community was flooded with various tutorials on volume manipulation. Stimulated by this activity, Backpack announced on the 18th that it had achieved a milestone of over $1 billion in trading volume within 24 hours.
However, with the surge in volume manipulation activities, the official Chinese version of Backpack’s Twitter issued a warning today, stating that volume manipulation behavior will be monitored. After the announcement, many users engaged in volume manipulation expressed their dissatisfaction, criticizing the statement as “celebrating trading volume exceeding $1 billion in English tweets, but threatening to punish volume manipulation in Chinese tweets” and questioning whether there is a clear definition of malicious volume manipulation behavior. However, there were also users showing their support.
So far, Backpack’s official English version of Twitter has not issued a similar announcement, and Backpack’s founder, Armani Ferrante, has not issued any warnings regarding volume manipulation on his Twitter. However, he did recently tweet a reminder to trade responsibly.
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