The allocation of MATIC tokens by the Polygon Foundation has come under scrutiny due to potential irregularities. An investigation by ChainArgos revealed anomalies in the token flows, particularly in relation to the launchpad sale and staking tokens. The analysis found unusual outflows from a vesting contract and irregularities in the foundation’s contract. Furthermore, discrepancies were identified in the flow of tokens to Binance 33 on Etherscan.
ChainArgos also discovered that 400 million MATIC tokens were missing and traced a flow of 300 million MATIC from Binance 33 to another address. This address received 467 million MATIC tokens from a wallet associated with marketing and ecosystem activities before transferring 767 million MATIC to Binance exchange wallets. These transactions represent a significant volume of nearly a billion dollars.
According to ChainArgos, this collaboration between the Polygon team and Binance bypasses standard token distribution protocols and raises concerns about market manipulation. A chart showing the outflows from one of the addresses involved correlates with a price drop in MATIC during March to June 2023.
Amidst these revelations, Hermez Network, acquired by Polygon, unstaked and deposited 4.5 million MATIC into SwissBorg. This move occurred amid growing concerns about transparency in the foundation’s token allocation.
These findings highlight the need for robust mechanisms to ensure integrity and transparency in significant financial movements within the crypto industry. It is crucial for investors and participants to be aware of such risks associated with opaque practices.
Hot Take: Potential Market Manipulation Raises Concerns over Polygon’s Token Allocation
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