The ManusAI Debacle: A Warning Against Hype and "Rug Pulls" in the Cryptocurrency Market

The ManusAI Debacle: A Warning Against Hype and "Rug Pulls" in the Cryptocurrency MarketThe recent surge in popularity of Manus, touted as the "world's first universal intelligent agent," has sparked a wave of similarly named cryptocurrencies in the market, accompanied by account freezes, denials, and other incidents exposing the rampant "hype-jacking" and "rug pull" schemes. This article delves into the risks behind the Manus incident and explores how investors can avoid such pitfalls

The ManusAI Debacle: A Warning Against Hype and "Rug Pulls" in the Cryptocurrency Market

The recent surge in popularity of Manus, touted as the "world's first universal intelligent agent," has sparked a wave of similarly named cryptocurrencies in the market, accompanied by account freezes, denials, and other incidents exposing the rampant "hype-jacking" and "rug pull" schemes. This article delves into the risks behind the Manus incident and explores how investors can avoid such pitfalls.

Manus, with its purported user-friendly interface and powerful capabilities, quickly gained traction on social media, driving up the price of its invitation codes to tens of thousands of dollars. However, this rapid rise in popularity was mirrored by the emergence of numerous Manus-branded cryptocurrencies, raising significant concerns. Some argue that Manus's success was based on excessive marketing and hype, ultimately aimed at exploiting the cryptocurrency market for a "rug pull" a fraudulent scheme where developers abandon a project, leaving investors with worthless tokens.

On March 7th, ManusAI's official X account was suspended for violating platform rules. Manus co-founder and chief scientist, Ji Yichao, subsequently issued a statement clarifying that Manus had never been involved in any cryptocurrency projects, token launches, or blockchain initiatives. He branded any cryptocurrency claiming association with Manus as fraudulent. Although the account was eventually reinstated, numerous similarly named cryptocurrencies continued to emerge. On March 9th, a cryptocurrency called "ManusAI" even appeared on the OKX exchange; while initially priced low, its value surged by over 200%.

Data from Coingecko reveals that several "Manus"-named tokens experienced dramatic price spikes. One token, launched just three days prior, saw a 24-hour trading volume exceeding one million dollars, with a price increase exceeding 900%, followed by a rapid decline. These tokens largely fall under the "meme coin" category cryptocurrencies named after people, animals, artwork, or anything else, relying on community building to attract users. Leveraging trending technologies to generate hype is a common tactic for meme coins; similar occurrences followed the popularity of ChatGPT and DeepSeek.

While seemingly lighthearted, meme coins often involve unrealistic promises and hype, sometimes even market manipulation and illegal fundraising. Yu Jianing, co-chair of the Blockchain Special Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, points out that unscrupulous individuals or speculators exploit trending events to attract capital and trading volume in the short term, creating assets with inherently fragile value and extremely short lifespans. Pan He Lin, a renowned economist, agrees, emphasizing that cryptocurrency pricing is often not based on objective market forces but rather manipulated by speculators. Therefore, the ultimate goal of "hype-jacking" is a "rug pull," with these cryptocurrencies typically experiencing wild price swings as investors engage in a "hot potato" game.

Yu Jianing further analyzes the negative effects of these similarly named meme coins: they erode rational market judgment and amplify market volatility. These assets are usually characterized by their high volatility, short lifespans, and anonymous teams. Their low barrier to entry and rapid popularity lead to a massive inflow of capital in the short term, creating speculative bubbles. Driven by hype, market participants disregard the intrinsic value of the project, causing prices to detach from fundamentals. Extreme price fluctuations disrupt normal market trading order, sharply increasing the difficulty of risk management. Furthermore, meme coins often lack clear project entities and established operational models, making it difficult for existing legal and regulatory frameworks to determine accountability.

The "hype-jacking" phenomenon extends beyond cryptocurrency issuance to various marketing campaigns. On platforms like Xiaohongshu (a Chinese social media platform), some accounts post articles seemingly sharing "AI news" and "Manus updates," while their comment sections are flooded with links to "cryptocurrency and blockchain exchange groups." Platforms like Xianyu (a Chinese online marketplace) also easily provide access to sellers offering assistance with exchange account creation, selling "get-rich-quick secrets," or promoting "passive income generating cryptocurrencies." The legitimacy of these groups and tutorials is highly questionable.

Yu Jianing stresses that investors should remember that virtual assets are high-risk investments; their price fluctuations are significantly different from those of traditional assets. The underlying rights mechanisms and technological support of virtual assets also differ considerably from traditional investments. Before participating in the virtual asset market, thorough understanding of blockchain technology, decentralized business logic, and the digital financial system is essential for accurately assessing the intrinsic value of related virtual assets and fundamentally controlling investment risks.

The Manus incident serves as a stark warning to investors. In the face of countless "hype-jacking" attempts, investors must remain rational, exercise caution, and avoid blindly following trends to prevent becoming victims of "rug pulls." Only through a deep understanding of blockchain technology and market dynamics can investors mitigate risk and achieve sustainable returns in the cryptocurrency market. Investors should focus on the project's actual value, not chase short-term trends. Rational investment and careful decision-making are key to risk mitigation. Over-reliance on so-called "insider information" and "overnight riches" promises only increases risk. Maintaining a clear head, rational analysis, and cautious operations are crucial for success in the volatile cryptocurrency market. Acquiring and applying essential financial knowledge and enhancing risk awareness are paramount for every investor. Only with sufficient knowledge and judgment can investors make wise decisions and achieve wealth preservation and appreciation. Avoid investing all funds into high-risk virtual assets, and tailor investment strategies to personal circumstances to carefully manage risk. Monitor market trends and adjust strategies accordingly to adapt to market changes. Remember, investment is risky, and caution is advised. Don't be misled by short-term market fluctuations; adhere to a long-term investment philosophy for more stable returns. Thoroughly examine the background, team, and technology of investment projects to avoid risky ventures. Choose regulated trading platforms to ensure capital security. In the cryptocurrency market, risk and opportunity coexist; rationality and caution are essential for success. Regulators should also strengthen oversight, combat market irregularities, maintain market order, and protect investor rights. Only a well-regulated market can promote the healthy development of cryptocurrencies.