Blockchain Analysis Firm Alleges Unconventional Financial Transactions by Polygon Team: Breach of Token Distribution Commitment and Covert MATIC Token Dumping

Blockchain Analysis Firm Alleges Unconventional Financial Transactions by Polygon Team: Breach of Token Distribution Commitment and Covert MATIC Token Dumping

Blockchain Analysis Firm Alleges Unconventional Financial Transactions by Polygon Team: Breach of Token Distribution Commitment and Covert MATIC Token Dumping

ChainArgos, an online data analysis company, has accused Polygon of having suspicious token flows that do not align with its publicly announced token distribution plan.

Firstly, ChainArgos identified the token unlocking plan released by Polygon in previous years and created a table based on the time, quantity (total unlocked to date), and category.

Subsequently, ChainArgos used on-chain transaction data to find Polygon’s “token lock-up contract” and “foundation-controlled contract address” on the blockchain. The following chart, created by ChainArgos using data on token outflows from the token lock-up contract, shows that the dates and patterns presented are significantly different from Polygon’s promised unlocking plan.

On the other hand, ChainArgos also conducted further analysis of the foundation-controlled contract address. The largest quantity of 1.9 billion MATIC tokens is attributed to the Binance Launchpad allocation, which is not problematic. However, the portion attributed to “staking” exhibits abnormal token flows.

ChainArgos discovered that since the deployment of the staking contract in June 2020, the amount of MATIC tokens flowing into this contract has increased from 0 to 800 million tokens. However, according to the original official release plan, it should have increased from 400 million to 1.2 billion tokens. In other words, 400 million MATIC tokens have inexplicably disappeared.

Further tracking revealed that these 400 million missing MATIC tokens were actually sent to an address labeled as “Binance 33” on the blockchain. Subsequently, Binance 33 transferred 300 million MATIC tokens to an address starting with 0x2f4. It is worth noting that this address starting with 0x2f4 also received 467 million MATIC tokens from the “Matic: Marketing & Ecosystem” wallet address, and ultimately, all of these MATIC tokens flowed to the Binance exchange, most likely for selling purposes.

These transactions mainly occurred between 2021 and 2023. Based on the market value during this period, the total value of 767 million MATIC tokens is approximately $1 billion.

By presenting this evidence, ChainArgos indicates that the Polygon team did not distribute tokens as promised and may have collaborated privately with Binance to sell MATIC tokens, profiting at the expense of investors. At the time of transcription, Polygon has not responded to ChainArgos’ allegations.