MMT Soars 160% After Binance Listing, Sparks Scam Allegations

The cryptocurrency market witnessed a dramatic divergence on November 5 as Momentum (MMT), a lesser-known altcoin, exploded in value while most major digital assets posted substantial losses. The catalyst for this surge was a comprehensive announcement from Binance, the world’s largest cryptocurrency exchange, which added MMT to its Simple Earn, “Buy Crypto,” Binance Convert, Binance Margin, and Binance Futures programs. This institutional backing triggered an immediate and powerful rally for the digital asset.

The impact was immediate and staggering. MMT’s valuation briefly skyrocketed above $4, pushing its market capitalization beyond $800 million in a matter of hours. However, the euphoria proved short-lived as the token experienced a significant retracement, settling at $1.16 by the end of the trading day. Despite this pullback, the price still represented a remarkable 160% increase on a daily scale, showcasing the immense volatility that can accompany exchange listings of this magnitude.

Such dramatic reactions are not uncommon in the crypto space, where backing from a major exchange like Binance can dramatically boost a token’s liquidity, visibility, and perceived legitimacy. Momentum (MMT), a recently launched token, had previously received support from other leading exchanges including Upbit, OKX, and LBank, but the Binance integration represented its most significant endorsement to date.

The spectacular price swings quickly attracted scrutiny and criticism from industry participants. Prominent X user Honey labeled the project “the biggest scam in crypto history,” pointing to what they described as extreme market manipulation. According to Honey’s analysis, a staggering $114 million was liquidated in the newly listed coin within just 24 hours, with the highest short liquidation occurring across the entire cryptocurrency market.

The scale of the liquidations was particularly notable when compared to market leaders. Honey noted that Bitcoin’s total short liquidation was just $56 million during the same period, less than half of MMT’s figure. The data suggested that a few large traders, or “whales,” were wiped out with nearly $50 million in losses, fueling accusations of coordinated price manipulation designed to trigger cascading liquidations.

These allegations highlight the persistent concerns about market integrity in the cryptocurrency space, particularly around newly listed assets that experience extreme volatility. The controversy surrounding MMT’s price action demonstrates how rapid gains can quickly turn into accusations of foul play, especially when accompanied by massive liquidation events that disproportionately affect leveraged traders.

While MMT captured headlines with its dramatic surge, Binance simultaneously announced the delisting of several spot trading pairs, including INIT/BNB, IOTX/BTC, PEOPLE/BTC, RESOLV/FDUSD, RUNE/FDUSD, and USUAL/BTC. Unlike the dramatic price movements associated with MMT’s listing, these delistings caused minimal market impact, with no significant declines observed in the affected tokens.

This muted reaction stands in stark contrast to previous Binance delisting events that triggered substantial price declines. Towards the end of October, the exchange’s decision to delist Flamingo (FLM), Kadena (KDA), and Perpetual Protocol (PERP) resulted in all affected tokens nosediving by double digits. The pattern continued earlier in November when Binance revealed it would close all positions and conduct automatic settlement on the KDA/USDT perpetual contract, dealing another blow to Kadena.

Other tokens affected by Binance’s contract terminations included Axie Infinity (AXS) and Theta Network (THETA), which both headed south following the termination of their respective perpetual contracts. The differing market reactions to Binance’s various listing and delisting actions underscore the complex dynamics at play in cryptocurrency markets, where exchange support can create both tremendous opportunity and significant risk for investors.