The Polygon Foundation, the organization behind the popular Ethereum scaling solution Polygon, has denied allegations that it dumped millions of dollars worth of its native token Matic on Binance.
Experts Accused Polygon of Dumping Tokens
The accusations surfaced after a blockchain analytics firm Lookonchain reported that two wallets labeled as “Polygon Foundation” transferred over $5.5 million worth of Matic to Binance in the past 30 days. The firm claimed that the wallets showed strong links to key members of the Polygon team and that the transfers coincided with a drop in Matic’s price.
Is Polygon Foundation selling $MATIC?
We noticed that "Polygon Foundation: 0x8d36" deposited 6M $MATIC ($3.35M) to #Binance in the past 2 days.
And another address "Polygon Foundation: 0xf957" deposited 4.6M $MATIC ($2.57M) to #Binance in the past 30 days. pic.twitter.com/zsQsB9PF3g
— Lookonchain (@lookonchain) September 7, 2023
However, Polygon co-founder Sandeep Nailwal refuted the claims and said that the wallets were mislabeled and did not belong to the foundation. He also urged Lookonchain to be careful about spreading false information and creating unnecessary FUD (fear, uncertainty, and doubt) among the community.
Lookonchain responded that the wallets were labeled by another analytics firm, Nansen, based on a rigorous process of tracing transactions and counterparties. Nansen explained that the wallets had received tokens from private rounds that Polygon invested in and had interacted with other entities tied closely to Polygon.
However, Nansen also said that since Polygon CEO Marc Boiron publicly denied any connection to the wallets, they would remove the labels. Boiron thanked Nansen for doing so and acknowledged that labeling wallets was not an easy task.
Polygon is one of the most successful Ethereum scaling solutions, offering faster and cheaper transactions for various decentralized applications (DApps) and protocols. The project has attracted many users and investors, including billionaire Mark Cuban, who revealed that he was a fan of Polygon in May.
The Matic token has also performed well this year, reaching an all-time high of $2.68 in May. However, it has since corrected by more than 70%, trading at around $0.75 at the time of writing.
