RIVER Token Hit by $300M Supply Cornering Scheme
A massive RIVER token supply cornering scheme has reportedly netted a single entity over $300 million in profits. This alleged manipulation, uncovered by crypto researcher Wazz, involved the use of 2,418 addresses primarily orchestrated through the Bitget exchange. The incident highlights the risks of market manipulation and the need for greater scrutiny of centralized exchanges. To understand more about how these currencies are designed to function, read our beginner’s guide to understanding cryptocurrency.
Details of the $RIVER Token Manipulation
- A single entity exploited 2,418 addresses to corner the $RIVER supply, leading to substantial profits.
- Withdrawals from Bitget significantly inflated the token’s price, potentially endangering retail investors.
- The incident raises questions about the role of centralized exchanges like Bitget and Binance in preventing market manipulation.
The operation reportedly began with a wallet funded by 8 BNB through OKX. The operator then utilized a distribution contract called Multicall3 to discreetly distribute BNB to 362 addresses. This technique obscured initial accumulation activity on most blockchain explorers.
Wazz revealed that these initial recipients formed a nine-hop chain, encompassing 2,418 addresses in total. This chain systematically funneled $RIVER tokens into a concentrated set of wallets. Major withdrawals from Bitget occurred on December 5 and December 29, involving two million and one million tokens respectively. These moves had a dramatic impact on the market, and you can learn more about the underlying technology that allowed this manipulation by reading about basic information about blockchain.
Initially, these withdrawals represented $22 million at an average price of $4.12 per token. However, at the peak of $RIVER’s price surge, the accumulated tokens would have been worth approximately $350 million. As a result, nearly half of the entire circulating supply was controlled by a single entity.
Market Impact and Risks for Traders
Analyst Brain described the operation as “a sophisticated industrial-scale wash trading or supply cornering operation.” He emphasized the immense market influence held by a single party controlling such a vast number of addresses. The recent price drop of RIVER by 37% indicates the entity has begun unloading its holdings, which could lead to further losses for retail traders. The risk of investing in cryptocurrencies is high, and as the crypto world evolves, it’s crucial to analyze predictions of crypto bull run 2025 to navigate these risks.
Risks to Retail Traders
Retail traders face considerable risks when one entity controls a significant portion of a token’s supply. As Brain pointed out, unless traders were involved in the accumulation phase below $0.01, they are essentially providing exit liquidity for the entity’s $300 million profit. The ongoing unwinding of holdings by the controlling entity is expected to exert further downward pressure on $RIVER’s price.
Centralized Exchanges Under Scrutiny
Both Wazz and Brain have criticized Bitget for either facilitating or overlooking these manipulative practices. They also suggested that “Binance and co are also comfortable taking in fee money for perps and liquidating their users gambling on this.” This incident underscores growing concerns about centralized exchanges and their role in enabling market manipulation. For broader coverage of the cryptocurrency markets, refer to reports from CoinDesk.
