Polygon Foundation Refutes Claims Of Dumping MATIC On Binance – Here’s What Happened
07 September 2023 - 9:00PM
NEWSBTC
Blockchain analytics site Lookonchain flagged recent transactions
of two on-chain addresses allegedly owned by the Polygon
Foundation. The platform reported that one of these wallet
addresses had transferred large amounts of MATIC – the Polygon
network’s native token – to Binance in the past two days. According
to Lookonchain, the two addresses, tagged as “Polygon
Foundation: 0x8d36” and “Polygon Foundation: 0xf957,” have
collectively transferred nearly $6 million worth of MATIC to
Binance over the past month, with more than half of the amount
deposited onto the exchange in the last two days. Polygon Labs
Founder Denies Dumping MATIC Tokens In an X post, Polygon Labs
founder Sandeep Nailwal swiftly refuted the suggestions that the
Polygon Foundation may be dumping MATIC tokens on Binance. The
founder asserted it was “another” case of incorrectly labeling
wallet addresses. Related Reading: Korean Finance Giant Partners
With Polygon Labs, Can It Push MATIC Above $1? Nailwal emphasized
the need to exercise caution before publishing claims of this
nature, as they can create FUD (fear, uncertainty, and doubt) in
the crypto community. For context, FUD refers to the spread of
negative – and sometimes false – information about a cryptocurrency
or the general market to create fear and doubt among investors and
potentially influence prices. It is worth mentioning that the
founder’s claims align with the words of Polygon Labs CEO Marc
Boiron, who was the first to raise this issue of wallet
mislabeling. Boiron had also insisted that the Polygon Foundation
controls none of the addresses. In response to Boiron,
Lookonchain stated that the crypto intelligence platform Nansen
conducted the address labeling. Wallet Addresses Are Strongly
Linked To Polygon Foundation, Nansen Reiterates Nansen responded to
the situation, explaining why the two wallets were linked to the
Polygon Foundation. Meanwhile, the analytics firm put in a robust
defense for its address labeling system, claiming that every label
undergoes a “rigorous documentation process.” Going further in its
explanation, Nansen cited some instances where prominent figures at
Polygon Labs interacted with the “Polygon Foundation: 0x8d36”
address. In one example, Polygon’s head of growth, Sanket Shah,
reportedly sent ETH to the address for “gas purposes.” Related
Reading: Ethereum Price Could See Lift-off Unless This Support
Gives Way For the second address, “Polygon Foundation: 0xf957”,
Nansen said its counterparties consist of the first address and
other entities closely associated with Polygon, including the head
of investments, Shreyansh Singh. Nansen concluded that: The
evidence for both of these addresses shows a very strong link to
various individuals and entities of the Polygon Foundation, and
that’s why we labeled these addresses as part of the Polygon
Foundation. Despite this, Nansen claims to have removed the labels
“as a gesture of goodwill” since the Polygon Labs CEO openly denied
links to the two addresses. MATIC Price continues to
consolidate on the daily timeframe | Source: MATICUSDT chart on
TradingView Featured image from Forbes, chart from TradingView
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