In a recent analysis conducted by crypto intelligence firm ChainArgos, alarming allegations have arisen regarding the Polygon team’s involvement in secret sales of MATIC tokens. These secretive transactions may have led to the deliberate suppression of the token’s price. ChainArgos, in a series of statements on X (formerly Twitter), revealed discrepancies between Polygon’s publicly announced token allocation plan and the observed actual flows. This article will delve into the findings of ChainArgos’ analysis and explore the implications of these allegations for the crypto space.
During the analysis, ChainArgos focused on the irregular outflows from a “vesting contract” and a foundation contract, which are responsible for managing the token allocations. Notably, the firm detected peculiarities in the shape and size of these flows. ChainArgos reported, “When you look at the flows you find a ‘vesting contract’ which mechanically unlocks all flows… That shape is odd and the gaps are all different sizes,” indicating potential irregularities.
One significant cause for concern is the supposed staking allocation. According to ChainArgos’ analysis, although the allocation table stated a range from 400 million to 1.2 billion MATIC for staking, only 800 million MATIC ended up flowing into the staking contract. This discrepancy of 400 million MATIC was traced back to an address named “Binance 33” on Etherscan. ChainArgos asserts that this address is not associated with staking activities. Intriguingly, this address was also involved in a flow of 300 million MATIC to another address, which subsequently sent 767 million MATIC to Binance exchange wallets. ChainArgos noted, “467 million [came] from the Etherscan-labeled ‘Matic: Marketing & Ecosystem wallet’.” This pattern of outflows suggests a coordinated effort by the Polygon team and Binance to secretly move large sums of MATIC, potentially indicating price manipulation.
ChainArgos further correlated the outflows from the address 0x2f4Ee with the MATIC price chart, suggesting that these movements were indicative of impending price tops and subsequent downturns. The firm criticized the lack of transparency and oversight in these transactions, urging investors to be more diligent and question the allocation of their funds. ChainArgos emphasized, “This is not even well hidden… Because none of this is difficult to find. Do better ‘investors.’ Also, maybe, ask where your money went.”
To provide context, the token supply distribution for Polygon includes various categories such as Private Sale tokens (3.80% of the total supply), Launchpad sale tokens (19%), Team tokens (16%), Advisors tokens (4%), Network Operations tokens (12%), Foundation tokens (21.86%), and Ecosystem tokens (23.33%). The Launchpad sale, conducted in April 2019, raised approximately $5,000,000 USD. However, these findings cast serious doubt on the integrity of token allocations and raise concerns about the potential for market manipulation within the crypto space.
The analysis conducted by ChainArgos has unearthed serious allegations pertaining to the suppression of MATIC token price through secret sales and deliberate market manipulation. These findings highlight the importance of transparency and oversight in the crypto industry, as well as the need for investors to conduct thorough research before making any investment decisions. It remains to be seen how Polygon and Binance will respond to these allegations, but they serve as a stark reminder of the risks associated with investing in cryptocurrencies. As the crypto space continues to evolve, it is crucial for regulators and market participants to address such issues to ensure a fair and transparent market for all investors.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered as financial or investment advice. Investing in cryptocurrencies carries inherent risks, and individuals are advised to conduct their own research and consult with financial professionals before making any investment decisions.