# Price manipulation schemes of new crypto-tokens in decentralized exchanges

arXiv: https://arxiv.org/abs/2502.10512 · HTML: https://mlsanity.com/paper/2502.10512/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 14 Feb 2025.

## Built on by (most cited first, 1 of 1)

- [Hide-and-Shill: A Reinforcement Learning Framework for Market Manipulation Detection in Symphony-a Decentralized Multi-Agent System](https://mlsanity.com/paper/2507.09179/) (2025)

## Abstract (arXiv)

Blockchain technology has revolutionized financial markets by enabling decentralized exchanges (DEXs) that operate without intermediaries. Uniswap V2, a leading DEX, facilitates the rapid creation and trading of new tokens, which offer high return potential but exposing investors to significant risks. In this work, we analyze the financial impact of newly created tokens, assessing their market dynamics, profitability and liquidity manipulations. Our findings reveal that a significant portion of market liquidity is trapped in honeypots, reducing market efficiency and misleading investors. Applying a simple buy-and-hold strategy, we are able to uncover some major risks associated with investing in newly created tokens, including the widespread presence of rug pulls and sandwich attacks. We extract the optimal sandwich amount, revealing that their proliferation in new tokens stems from higher profitability in low-liquidity pools. Furthermore, we analyze the fundamental differences between token price evolution in swap time and physical time. Using clustering techniques, we highlight these differences and identify typical patterns of honeypot and sellable tokens. Our study provides insights into the risks and financial dynamics of decentralized markets and their challenges for investors.