Backpack Exchange, founded by former executive of bankrupt cryptocurrency exchange FTX, has recently launched an account trading volume point mechanism. The more transactions, the more points earned, which may potentially lead to more rewards in the future. In this context, there has been a surge of volume brushing behavior within the community. In response, the official Chinese version of Backpack Exchange’s Twitter account issued a warning today, stating that volume brushing behavior will be strictly monitored.
(Previous Summary:
24-hour trading volume exceeds 600 million pounds: What is Backpack Exchange founded by former FTX executive? Registration and airdrop tutorial for PYTH)
(Background Supplement:
Interview with Backpack founder: Completely different from FTX in terms of technical structure, Solana is attractive enough to attract talent)
Backpack Exchange, led by former executive of bankrupt cryptocurrency exchange FTX, began operations in the fourth quarter of last year. At the beginning of its launch, Backpack Exchange collaborated with Solana’s ecosystem oracle project, Pyth Network, to attract users. In November last year, they conducted their first airdrop activity.
Users only needed to register an account on Backpack Exchange, complete KYC verification, and deposit SOL tokens during the specified time for staking and trading in order to receive PYTH token rewards. As a result, this activity attracted over 100,000 participants, and many users reported that they made significant profits from the airdrop. Some even claimed that they lost $300 through SOL trading but received PYTH tokens worth $5,000 in the end.
Backpack Exchange launches new activity, triggering a surge of volume brushing behavior
On the 12th, Backpack Exchange announced the launch of a new activity. Starting from 7:00 AM on the 14th (Taiwan time), they activated an account trading volume point mechanism. The more transactions, the more points earned. The ranking of point accumulation will serve as important reference data for future large-scale marketing activities, such as airdrop eligibility or project listings on Launch Pool.
After the launch of this activity, many users on Twitter started using automated API scripts to brush volume in order to earn more points. The community was filled with various tutorials on volume brushing. Stimulated by this activity, Backpack Exchange announced on the 18th that they had reached a milestone of over 1 billion USD in trading volume within 24 hours.
Backpack Exchange warns of monitoring volume brushing behavior
However, with the surge of volume brushing, the official Chinese version of Backpack Exchange’s Twitter account issued a warning today, stating that volume brushing behavior will be monitored.
After the announcement, many users who were engaged in volume brushing expressed their dissatisfaction, criticizing the statement saying, “You celebrate breaking 1 billion in trading volume in English, but threaten us with volume brushing in Chinese,” “If you don’t allow volume brushing, can your exchange attract users?” and “Can you provide a clear definition of malicious volume brushing behavior?” However, some users expressed their support.
So far, the official English version of Backpack Exchange’s Twitter account has not issued a similar announcement, and Backpack Exchange’s founder, Armani Ferrante, has not issued a warning about volume brushing. However, he did tweet earlier, reminding users to trade responsibly.
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