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Cream Finance's CREAM Token Soars 60%: Smart Investment or Pump-and-Dump Drama?

Jack Evans
Sep 25, 2023 at 09:08 pm

Cryptocurrency markets are no strangers to sudden price surges, and Cream Finance's native token, CREAM, has recently taken investors on a wild ride. With a remarkable 60% price increase observed on September 23rd, this digital asset has become the talk of the decentralized finance (DeFi) community. But as with any remarkable rise in the crypto world, questions are being raised about the intentions behind the surge.

According to blockchain analysts at Lookonchain, the driving force behind CREAM's price spike is none other than Jeffrey Huang, also known as Machi Big Brother. Huang's strategic maneuvers in the crypto market have been the subject of controversy in the past, and this recent development has not gone unnoticed.

Spot On Chain, another reputable on-chain data analysis firm, further delved into the situation. They discovered that between September 23rd and 24th, a three-year Cream Finance staking contract was unstaked, releasing a substantial amount of CREAM tokens valued at approximately $4.27 million to 19 distinct addresses. What's intriguing is that this action occurred after the token's price had already surged by a whopping 73%, going from $11.87 to $20.56.

The majority of these unstaked CREAM tokens found their way into the wallet of Machi Big Brother, who acquired 215,236 tokens, worth roughly $3.8 million, across two addresses. Rather than cashing out, Huang decided to re-stake every token, which some interpret as a sign of his optimistic long-term outlook for CREAM.

However, not everyone is convinced of Huang's intentions. Crypto educator Sumit Kapoor has hinted at the possibility of a pump-and-dump scheme. Kapoor points to CREAM's 24-hour trading volume, which is nearly three times higher than its market capitalization. This discrepancy, according to Kapoor, suggests that the token might be in the "blowoff stage" of a parabolic run, possibly signaling that someone is preparing to dump their CREAM tokens.

Kapoor compares CREAM's price action to that of several other low-cap tokens, including CyberConnect (CYBER), Perpetual Protocol (PERP), Tellor (TRB), and Hifi Finance (HIFI), which have followed similar trajectories in recent weeks and days.

As of now, Huang holds 326,072 CREAM tokens, valued at approximately $7.43 million, staked within Cream Finance. Additionally, Spot On Chain's analysis reveals that 13 other addresses have either deposited or sold 5,408.65 CREAM tokens, worth roughly $99,000, on Binance and Gate.io.

The surge in Cream Finance's CREAM token has undoubtedly captured the attention of the crypto community, leaving investors and analysts alike pondering its true nature. Is this a smart investment strategy by Jeffrey Huang, reflecting his faith in the token's long-term potential, or is it a well-disguised pump-and-dump scheme? As the DeFi sector continues to evolve, only time will reveal the true story behind this remarkable price movement. Investors should exercise caution and conduct thorough research before diving into the world of CREAM and DeFi tokens.

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