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.
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.”
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
Opeyemi Sule
Opeyemi is a proficient journalist and content writer at NewsBTC, with an avid interest in cryptocurrency, blockchain technology, and Web3. As an astute analyst, Opeyemi covers news on the latest trends, actions, events in the crypto market. With a keen eye for detail and profound understanding of the crypto space, he delivers insightful analysis and engaging stories to diverse audience of investors, traders, and enthusiasts. Opeyemi boasts an extensive background and deep experience in content writing. Besides his professional work at NewsBTC, he also curates well-written pieces for various crypto media sites, including Bitcoinist, Chain Debrief, and Coinmash. When Opeyemi is not clicking away at his keyboard, he is probably listening to music from his multi-genre playlist or watching his favorite soccer team. He is also genuinely interested in politics, social issues, and interior design. You can follow Opeyemi on Twitter at @fwOpeyemi or on LinkedIn at Opeyemi Sule.
