MYX Finance Faces $170 Million Airdrop Sybil Attack Allegations

An analysis by Bubblemaps finds an orchestrated airdrop Sybil attack with $170 million in MYX tokens claimed through 100 addresses, coinciding with zero prior on-chain activity.

This incident highlights vulnerabilities in airdrop distribution, potentially impacting MYX’s market integrity and revealing risks in DeFi’s anti-Sybil mechanisms, warranting regulatory scrutiny.

Largest Airdrop Sybil Attack Unveiled: $170 Million in MYX Tokens

BlockBeats News reported that 100 new addresses executed identical on-chain activities to claim 9.8 million MYX tokens. Funds originated from OKX a month prior, with nearly simultaneous claims occurring on May 7. Bubblemaps characterized the orchestrated actions as unlikely to be random.

The exploit potentially affects 170 million USD in value, raising concerns about Myx Finance’s tokenomics. Such incidents could trigger whale-driven sell-offs, akin to previous token unlock patterns, thereby affecting market liquidity.

Publicly, Myx Finance’s leaders have not commented. Dominant social media and community opinions express skepticism, with concerns about manipulation and airdrop measures. Bubblemaps stated this could be history’s largest sybil attack via X (Twitter).

“A single entity received $170 million worth of tokens from the MYX airdrop. 100 addresses showed identical funding and claiming activity, making this the largest airdrop Sybil attack in history.” — Bubblemaps Team, Data Analysis Platform, Bubblemaps

Regulatory Scrutiny Looms as DeFi Integrity Questioned

Did you know? During previous token unlocks, similar surges resulted in up to 240% daily price increases, subsequently followed by dramatic sell-offs, affecting retail investor confidence.

According to CoinMarketCap, MYX Finance’s price was $17.35 with a market cap of $3,419,927,619. Current supply is 197,111,680.5 of a maximum 1 billion. Market experienced significant shifts with a 105.59% rise over 24 hours, reflecting a volatile outlook post-exploit.

Experts from Coincu predict the Sybil attack could lead to enhanced regulatory scrutiny across decentralized finance ecosystems. Addressing systemic weaknesses in DeFi airdrop systems is seen as critical for future market stability.