How the Exchange Faced a Huge Loss

On December 19, the mastermind behind Grimace pulled off what looked like a holiday miracle, making their followers millions of dollars richer. This massive giveaway was possible because MEXC, an exchange, decided to list the token as a future without asking the community, which ended up costing them a lot.

The Clash Explained: A Simple Breakdown

Early in 2023, a new crypto project named Grimace came onto the scene and quickly became popular. Early backers made good money and helped others by donating to charity. There were big giveaways and competitions with large cash prizes for games and even rap battles.

Grimace was first traded on MEXC on June 12, 2023. People initially liked the low fees of the exchange. However, in October, MEXC listed Grimace on futures without the community’s permission. This act was seen as unfair and against what the Grimace team had planned.

When trying to solve the issue without conflict didn’t work, a community leader named Odysseus told everyone to take their tokens off MEXC and move them to BitGet. This action almost cleared out MEXC’s trading activity for Grimace, with the exchange’s share of tokens dropping drastically from 40% to just 1.5%.

MEXC didn’t really react, so Odysseus put out a serious warning. He instructed the community on how to set up trades on Grimace futures, planning to first drop the price to activate these trades and then shoot it up. This strategy was effective because there wasn’t much other trading happening.

MEXC’s system, which usually profits from price differences, ended up losing all its money in this event. The Grimace community ended up benefiting from this.

This incident cost the exchange several hundred thousand dollars. After this, MEXC’s management contacted Grimace’s creators. But they didn’t stop listing Grimace on futures, which led to more similar issues. The most damaging attack on the exchange was yet to come.

December 19 – Grimace’s Major Victory

That night, Odysseus announced a special live stream on the INV TRADING channel.

He planned to pull off an even bigger event this time, aiming to earn more money for his viewers using the exchange’s funds. He set up trades at lower prices and then increased the price a lot, to $358 per coin. This move led to huge earnings, especially because of the added leverage.

At the same time, the regular market saw the price jump to $852. MEXC’s system couldn’t keep up due to a lack of funds, allowing Odysseus’s followers and INV TRADING to gain from it.

Soon after, the platform had trouble showing the very high profit percentages.

Just an hour after these events, MEXC announced it would stop trading Grimace. They usually give a week or a month’s notice for this, but users were given less than two days to respond this time.

This marked a clear win for Grimace. We’re continuing to watch this very active crypto community: https://twitter.com/GrimaceOdysseus.