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Warena Price Manipulation

Publish date: Oct 8, 2021
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Warena Price Manipulation

Have you ever wondered how Initial DEX Offerings (IDOs) are so profitable? You probably often hear launches that made 10x or 20x. However, what you don’t know is. They are 20x from the presale.

If you buy it at launch, you are essentially funding the private / presalers.

How?

Those IDOs will sell the tokens on their respective platforms for a favoriable rate. For example, Warena was sold for 0.165 BUSD per 1 Warena on Redkite.

Presale price is $0.165 per Warena token

However, on pancake swap launch time, Warena could add any liquidity they want to the pancake pair – in this case, they added the following:

$91,158.61 (USD) / 109091 (tokens) = $0.835 per token

Based on the calculation, the presalers immediately receive a 5.06x bump ($0.835 / $0.165) = 5.06 – which meant that the presalers were able to profit on launch immediately and could dump on anyone that tried to buy the tokens at launch.

Lies

The tokenomics stated that the listing price is $0.165; however, the listing price ended up being $0.835

Learnings

Ask yourself this question – “Would I buy at launch if I knew listing rate is 5 times worse than the presalers?”

Disclaimer: Not financial advice. Do your own research.