23 February, 2024

ChainArgos Exposes Irregular MATIC Token Flows Linked to Binance

1 month ago

16 Jan, 2024

  • ChainArgos uncovers anomalies in MATIC token flows from Polygon’s contracts, suggesting potential market manipulation.
  • Investigations reveal a shortfall in MATIC allocation for staking, with 767 million tokens possibly discreetly moved to Binance.
  • Suspicious activities include significant MATIC withdrawals from Coinbase and atypical transfer patterns, raising questions about the authenticity of network metrics.

A recent investigation by ChainArgos, a crypto intelligence firm, has unveiled startling findings regarding Polygon’s token allocation and transfer activities. The firm discovered anomalies in the token flows from Polygon’s vesting and foundation contracts. According to the firm, these contracts transferred significant amounts of MATIC to an address related to Binance, a renowned cryptocurrency exchange. These transactions did not align with staking activities and were later moved to Binance exchange wallets.

Further examination revealed a shortfall of 400 million MATIC in the staking contract, compared to the minimum allocation outlined in Polygon’s public token economics plan. ChainArgos traced this discrepancy to an address labeled ‘Binance 33’ on Etherscan, which was not linked to staking but was involved in transferring 300 million MATIC to another address. This address subsequently sent 767 million MATIC to Binance wallets.

ChainArgos added that the Polygon team and Binance were “clearly working together” to move a substantial quantity of tokens discreetly. They highlighted the magnitude of the operation, involving “767 million tokens” valued between “$1-$2” each, amounting to an estimated “billion dollars.” The firm suggested that such activities could be indicative of attempts to manipulate the token’s market price.

The firm also correlated outflows from the address 0x2f4Ee with the MATIC price chart, implying that these movements could predict market peaks and subsequent downturns. This pattern raised concerns over the transparency and integrity of these transactions, leading ChainArgos to call for heightened investor awareness and questioning of fund allocations.

Adding to the intrigue, Polygon’s network activity has also come under scrutiny. Instances of repetitive transfers and significant MATIC movements by ‘whales’ through various channels have led to skepticism among the crypto community about the authenticity of these engagement metrics.

A pattern of substantial MATIC withdrawals from Coinbase was identified by an X user. This activity, characterized as ‘whale’ behavior, entailed transferring $53.53k worth of MATIC across multiple wallets, routing it through the Polygon Plasma bridge, and then cycling it back to Coinbase via a mixer. Remarkably, this pattern was not unique, as similar transactions were observed with at least 14 other wallets.