Polygon-Binance Face Allegations: ChainArgos Claims Suspicious Token Mismanagement

Shraddha Sharma
January 16, 2024
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Source: Pixabay

In a series of posts on X, ChainArgos, a blockchain intelligence firm, has raised serious allegations about the Polygon network. The allegations are particularly about token allocations and suspicious transfers to exchanges.

ChainArgos investigation claims discrepancies between Polygon’s publicly stated plans for token allocation and the actual movement of tokens.

According to the firm, a significant issue lies in the allocation of tokens for the Launchpad Sale and Staking.

Advertisement
Advertisement

The case of “missing” tokens

The blockchain intelligence firm has documented its findings in a spreadsheet, accessible online, which compares expected amounts with actual allocations.

It points to two primary contracts within the Polygon network: a “vesting contract,” which is responsible for unlocking token flows, and a “foundation contract.” The latter appears to manage not only the foundation’s operations but also the entirety of token allocations. The outflows from this foundation contract suggest it controls all 10 billion total tokens.

The investigation also claims that while the top entry of 1.2 billion tokens likely corresponds to the Launchpad Sale, discrepancies arise with the staking allocations. The data indicates that the cumulative flow into the staking contract was from 0 to 800 million, whereas the allocation table suggested it should be from 400 million to 1.2 billion, as per ChainArgos .

That said, ChainArgos identified that an estimated 400 million “missing” tokens were transferred to an address labeled “Binance 33” on Etherscan. This address received a single flow of 400 million tokens, with subsequent outflows that the firm asserts are unrelated to staking activities.

Advertisement
Advertisement

Alleged collusion of Polygon and Binance

Further probe by ChainArgos shows that an address, 0x2f4Ee65D536c5a2Dd72004778167B30aeCb8719C, received 300 million MATIC from the “Binance 33” address. This address also received $467 million from a wallet labeled “Matic: Marketing & Ecosystem” on Etherscan. Notably, this address then sent 767 million tokens to Binance exchange wallets.

ChainArgos suggests a collusion between the Polygon team and Binance, inferring that tokens worth approximately a billion dollars were illicitly funneled. They also observed that the outflows from address 0x2f4ee correlate with significant market movements, implying manipulation.

Also Read: Polygon Hits Major Network Adoption Milestone, MATIC to Soar?

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Shraddha's professional journey spans over five years, during which she worked as a financial journalist, covering business, markets, and cryptocurrencies. As a reporter, she has placed particular emphasis to learn about the market interaction with emerging technologies.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.