Cryptocurrency intelligence firm ChainArgos recently conducted a detailed analysis that sheds light on concerning allegations surrounding the Polygon team’s involvement in secret sales of MATIC tokens, potentially leading to a suppression of the token’s price. By closely examining the token allocations and subsequent flows to various exchanges, ChainArgos uncovered irregularities that raise questions about the integrity of Polygon’s token allocation plan. This article delves into the findings of the analysis and explores the potential implications for investors and the wider crypto market.
ChainArgos uncovered several irregularities in the token allocations of Polygon, casting doubt on the transparency and accuracy of the publicly stated allocation plan. The analysis highlighted unusual outflows from both a “vesting contract” and a foundation contract, which are responsible for managing the token allocations. The flows from the vesting contract appeared to unlock mechanically, but the varying sizes of the gaps raised suspicions, suggesting potential irregularities.
One key concern highlighted by ChainArgos is the supposed allocation for staking. Although the allocation table indicated a range of 400 million to 1.2 billion MATIC for staking, the actual flow into the staking contract started from zero and only reached 800 million. Upon further investigation, ChainArgos traced the missing 400 million MATIC to an address labeled “Binance 33” on Etherscan. Interestingly, this address was also involved in significant flows of the token, including transfers to another address, which ultimately sent a large amount of MATIC to Binance exchange wallets. The intelligence firm asserts that this pattern of outflows indicates price manipulation, suggesting a coordinated effort between the Polygon team and Binance to discreetly move substantial amounts of MATIC.
ChainArgos further correlated the outflows from a specific address, 0x2f4Ee, with the MATIC price chart, revealing a potential connection between these movements and impending price tops followed by subsequent declines. The analysis argued that these outflows from 0x2f4ee over time served as a clear indicator for predicting upcoming tops in the token’s price and subsequent downward trends. This observation raises concerns about possible market manipulation and the role played by the Polygon team in these activities.
One of the key criticisms raised by ChainArgos is the lack of transparency and oversight in these transactions. The analysis urges investors to exercise greater diligence and question the allocation of their funds. The firm asserts that these irregularities are not well-hidden and should have been easily discoverable. It emphasizes the need for investors to conduct thorough research and demand greater transparency from projects in which they invest.
To provide context, the analysis sheds light on the distribution of Polygon tokens across various categories. These categories include 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 analysis points out that the Launchpad sale, conducted in April 2019, raised approximately $5,000,000 USD. However, the discrepancies revealed by ChainArgos regarding the token allocations raise serious questions about the accuracy and integrity of these distribution categories.
The analysis conducted by ChainArgos raises significant concerns about the Polygon team’s potential involvement in secret token sales and the subsequent suppression of the MATIC token’s price. The uncovered irregularities in token allocations, as well as the correlation with price movements and the involvement of Binance, suggest potential market manipulation. The lack of transparency and oversight in these transactions calls for increased diligence on the part of investors and highlights the importance of demanding greater transparency from cryptocurrency projects. As the crypto market continues to evolve, it is crucial for investors to conduct thorough research and exercise caution when allocating their funds.
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