Polygon, a prominent blockchain network, is under scrutiny for apparent discrepancies in its token distributions, raising concerns about potential collaboration with Binance, as reported by intelligence organization ChainArgos.
ChainArgos conducted research revealing disparities between Polygon’s stated objectives for token distribution and the actual movement of tokens. The primary focus of concern revolves around the distribution of tokens related to the Launchpad Sale and Staking initiatives.
Analysis by ChainArgos points to the foundation contract having control over the entire 10 billion tokens, suggesting potential discrepancies in the distribution process.
1/ Polygon allocation problems and suspicious flows to exchanges.
Let's look at a very large project and explore how the allocations were not done in line with the publicly stated plan. And show some, um, suspicious flows to an exchange.
This has been part of our demo for quite…
— ChainArgos (@ChainArgos) January 15, 2024
Specifically, issues arise in the staking allocations, where inconsistencies are noted despite the top entry of 1.2 billion tokens likely correlating with the Launchpad Sale. According to ChainArgos, the allocation table indicates a cumulative flow into the staking contract between 400 million and 1.2 billion, while data reflects a range of 0 to 800 million.
ChainArgos highlights a noteworthy development where approximately 400 million tokens, deemed “missing,” were reportedly transferred to an Etherscan address identified as “Binance 33.”
Polygon $MATIC Massive Token Movement To Watch
In response to these concerns, Hermez Network took action by unstaking and depositing 4.5 million $MATIC (equivalent to $3.81 million) to SwissBorg a few hours ago. This move comes amidst growing transparency concerns regarding Polygon Foundation’s token allocation practices.
Acquired by Polygon for $250 million in 2021, Hermez Network, an open-source ZK Rollup, still has a substantial stake of at least 39.92 million $MATIC (approximately $34 million).
— Spot On Chain (@spotonchain) January 16, 2024
The situation raises questions about Polygon’s token distribution practices and potential collaborations, prompting increased vigilance within the crypto community.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.