In a recent development, the @ben_eth account has launched a memecoin called PSYOP after successfully raising $7 million. However, a series of experts have raised concerns about the coin, suggesting it displays signs of a scam.
On May 12, prominent NFT collector and Twitter influencer, @ben_eth, made the decision to create a memecoin named PSYOP. Ben.eth urged community members to participate in the memecoin’s presale by sending ETH to a wallet with the ENS domain name “ben.eth.”
$PSYOP CONTRACT:
0x3007083EAA95497cD6B2b809fB97B6A30bdF53D3
NOW TRADING ON UNISWAP.
— ben.eth (@eth_ben) May 19, 2023
Despite @ben_eth not providing any specific information about the token sale, hundreds of people trusted and sent ETH to the ben.eth wallet address. On May 17, the wallet received 3,803 ETH, equivalent to nearly $7 million.
At 8 am on May 19, @eth_ben announced the PSYOP token contract and created a liquidity pool on decentralized exchanges such as Uniswap v3, Poodl, and 1inch.
According to data from Dexscreener, ben.eth added $25 million to the PSYOP/ETH trading pair liquidity pool on Uniswap. The trading volume for this coin reached $2.2 million within a few hours. Currently, PSYOP is trading at $0.0009 with a market capitalization of $496 million.
Although the initial indicators seemed to suggest that @ben_eth fulfilled his commitments, several experts on Twitter have warned of suspicious liquidity creation methods employed by this influencer.
There are 400 very real WETH in the pool.https://t.co/aZeGkPjaB6
DexScreener and GeckoTerminal say there are 25M USD of liquidity, which is technically correct.
However, only 0.4M for those 25M is ETH, the rest is PSYOP. Meaning there’s actually 400K real liq.
Wouldn’t buy. https://t.co/pJGOQOtXiy pic.twitter.com/q2t9JzeSxT
— olimpio (@OlimpioCrypto) May 19, 2023
“There are 400 very real WETH in the pool. https://etherscan.io/address/0x42D403AB9B0603442aC991C0CFe124105DDe0811… DexScreener and GeckoTerminal say there are 25M USD of liquidity, which is technically correct. However, only 0.4M for those 25M is ETH, the rest is PSYOP. Meaning there’s actually 400K real liq. Wouldn’t buy.” cautioned @olimpiocrypto, a renowned Twitter influencer.
According to Uniswap data, @eth_ben only added over 400 ETH, equivalent to $700,000, to the liquidity pool. Nevertheless, the liquidity pool on Uniswap reached $25 million.
The reason behind this is that ben.eth utilized the Concentrated Liquidity Market Making (CLMM) model on Uniswap v3 to create liquidity for PSYOP. This feature enabled @eth_ben to add $700,000 worth of ETH at an initial low price, while the remaining portion consisted entirely of PSYOP tokens. As a result, the liquidity pool no longer consisted of 50% ETH and 50% PSYOP. In reality, the pool consists of 424.15 ETH and 26.9 billion PSYOP tokens.
After establishing liquidity, @eth_ben began airdropping PSYOP tokens to those who had sent ETH to him, gradually increasing the liquidity over time.
Regarding the liquidity issue on Uniswap, @eth_ben mentioned that the pools on Poodl and 1inch were functioning normally, with only Uniswap experiencing instability. However, the influencer did address the issue in detail and proposed solutions.
Poodl, 1inch, both work. Uniswap buys are still not routing properly in some cases. $PSYOP.
— ben.eth (@eth_ben) May 19, 2023
While the launch of PSYOP may have initially appeared promising, the concerns raised by experts regarding the liquidity creation methods employed by @ben_eth have cast doubt on the legitimacy of this project. Investors and community members are advised to exercise caution and conduct thorough research before participating in any investment opportunities.
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