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 a large amount of MATIC – the native token of Polygon Network – to Binance over the past two days.
According to lookonchainThe two addresses, tagged as “Polygon Foundation: 0x8d36” and “Polygon Foundation: 0xf957”, have collectively transferred nearly $6 million worth of MATIC to Binance in the past month, with more than half Excess amount has been deposited in the exchange. last two days.
Polygon Labs Founder Denies Dumping MATIC Tokens
In an x postSandeep Nailwal, founder of Polygon Labs, swiftly denied suggestions that the Polygon Foundation may be dumping the MATIC token on Binance. The founder claimed it was “yet another” case of mislabeling a wallet address.
Nailwal stressed 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 dissemination of negative – and sometimes false – information about cryptocurrencies or the general market in order to create fear and doubt among investors and potentially affect prices.
It is noteworthy that the founder’s claims are consistent with Words from Marc Boiron, CEO of Polygon Labs, who was the first to raise this issue of wallet mislabelling. Boiron also stressed that the Polygon Foundation does not control any of the addresses.
In response to Boiron, LookOnchain said that crypto intelligence platform Nansen handled the address labeling.
Wallet addresses strongly linked to Polygon Foundation, reiterates Nansen
Nanase reacted to the situation, explaining why both wallets were linked to the Polygon Foundation. Meanwhile, the analytics firm put up a strong defense for its address labeling system, claiming that each label goes through a “rigorous documentation process.”
Continuing in his explanation, Nansen cited a few instances where prominent figures from Polygon Labs interacted with the address “Polygon Foundation: 0x8d36”. In one instance, Polygon’s head of development, Sanket Shah, allegedly sent ETH to the address for “gas purposes”.
As for the second address, “Polygon Foundation: 0xf957”, Nansen said its counterparties include the first address and other entities closely linked to Polygon, including investment head Shreyansh Singh.
Nansen concluded that:
The evidence from both of these addresses shows a very strong connection to the Polygon Foundation with various individuals and entities, and that is why we have labeled these addresses as part of the Polygon Foundation.
Despite this, Nansen claims to have removed the label “as a gesture of goodwill” as the CEO of Polygon Labs has openly denied a link between the two addresses.
MATIC price continues to consolidate on the daily time frame. Source: MATICUSDT chart on TradingView
Featured Image from Forbes, Chart from TradingView