How the Grimace Community Made MEXC Exchange Surrender Millions

On December 19, the creator of Grimace orchestrated a live New Year’s spectacle, bestowing millions of dollars upon his followers. This entire event was funded by the MEXC exchange, which controversially listed the token on its futures market without the Grimace community’s consent.

How the Clash Unfolded: A Detailed Review

In early 2023, the crypto world witnessed the rise of Grimace, a project that quickly captured attention and enriched its early supporters, many of whom contributed to various charities. Money was given away in public, and high-stake competitions in poker, chess, Dota 2, Counter-Strike, and even rap battles were held, offering substantial cash prizes.

Grimace made its debut on MEXC on June 12, 2023. At first, the community favored the exchange for its competitive fees. However, a rift formed in October when MEXC listed Grimace on its futures market without prior agreement. This move was seen as a manipulative interference, straying far from the project’s original vision.

After unsuccessful attempts to resolve the issue amicably, Odysseus called for a withdrawal of tokens from MEXC and redirected all liquidity to BitGet, significantly depleting MEXC’s order book. As a result, the proportion of tokens held on MEXC drastically fell from 40% to a mere 1.5%.

Ignoring the exchange’s lack of response, Odysseus issued a serious ultimatum. He advised the community to set limit orders for long positions on Grimace futures between $45-46, with stop orders just below $40. He then strategically influenced the market to execute these orders, subsequently elevating the price to $90. This move was facilitated by the lower activity on the spot market.

During this chaos, MEXC’s arbitrage bot, typically profiting from slight price variations, lost all its liquidity, which then flowed into the Grimace community’s hands.

This incident cost the exchange a few hundred thousand dollars. In response, MEXC’s executives promptly reached out to Grimace’s developers. Despite this, there was no removal of the token from futures, leading to more aggressive maneuvers, culminating in a decisive strike later on.

December 19th – A Landmark Triumph for the Grimace Community

That evening, Odysseus announced an upcoming live stream on the INV TRADING channel.

Intending to perform a larger-scale New Year’s miracle live, he planned to enrich his viewers at the exchange’s expense.

He placed limit orders between $35-45 and then inflated the price dramatically, up to $358 per token. This maneuver, especially with leverage applied, resulted in substantial earnings for his followers.

At the same time, the spot market saw the price skyrocket to $852. MEXC’s arbitrage bot was unable to keep pace due to insufficient liquidity, and Odysseus’s followers, along with INV TRADING, gladly took advantage.

Eventually, even the platform struggled to process such extreme PNL percentages.

A mere hour later, a notice about the delisting was issued. Usually, such announcements are made well in advance, but here, users were given less than two days to settle their positions.

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This marked a clear-cut victory for Grimace. We’ll keep an eye on the unfolding events of this highly active crypto community: https://twitter.com/GrimaceOdysseus.