The blockchain intelligence firm, ChainArgos, recently raised some concerns about Polygon’s token allocation plan, suggesting that the presence of suspicious transfers from the platform to exchanges has been detected. In a follow-up thread on X (formerly Twitter), the firm detailed its allegations, stating that Polygon’s network has begun to deviate from its original token allocation plan.
ChainArgos’ revelations on January 15 focused on Polygon’s token distribution exercise, uncovering a “vesting contract” that automatically unlocks all flows. This contract operates independently of the foundation contract, which manages the foundation and its allocations. The blockchain intelligence firm pointed out inconsistencies in the flows from the vesting contract.
1/ Polygon: more suspicious flows to exchanges. Do you people not check anything?
This is only ~200mm but … come on. Maybe a reply is now warranted? https://t.co/reDtyFsecP pic.twitter.com/U0v1AJlkt7
— ChainArgos (@ChainArgos) January 18, 2024
In a subsequent thread, ChainArgos identified suspicious flows in a wallet that received around 340 million MATIC from the foundation. It is important to note that the same wallet received an additional 130 million MATIC from an insider wallet. According to ChainArgos, the most significant flow detected was to a wallet associated with the plasma-bridge, along with two other transfers to untagged wallets.
More Suspicions About Polygon: 178 Million Matic Were Sent to Binance
Additionally, ChainArgos highlighted that another 178 million MATIC was sent from one of the untagged wallets to Binance, with the latest transfer occurring on May 23, 2021. To substantiate its claims, the blockchain intelligence platform posted a chart from the Ethereum blockchain explorer, Etherscan.
MATIC, the native token of Polygon, faced significant challenges in recovering from the bear market. In 2023, it showed minimal bullish sentiment, with only an initial rally at the beginning of the year. According to current data from TradingView, MATIC is trading at $0.8170, reflecting a 15% loss from its opening price on January 1, 2024.
ChainArgos’ allegations raise questions about transparency and adherence to token allocation plans within the Polygon network, potentially impacting investor confidence in the platform. Concerns about suspicious transfers and deviations from the original plan could lead to increased scrutiny and discussion within the crypto community.
