Polygon leadership denies allegations of a MATIC dump

Lookonchain analysts flagged two addresses allegedly belonging to the Polygon Foundation that transferred a total of 10.6 million MATIC (~$5.9 million) to Binance. Sandeep Nailwal, founder of Polygon Labs, refuted this information.

One more time, incorrect labelling @lookonchain. This is the second time this has happened.

Plz be careful about these tweets ??, creates unnecessary FUDs for the community https://t.co/mVpaIYB9Xt

— Sandeep Nailwal | sandeep. polygon ? (@sandeepnailwal) September 7, 2023

According to Nailwal, the issue lies in incorrect wallet labeling, which is handled by Nansen. He added that such confusion has occurred for the second time.

In response, Nansen stated that address labeling is a rigorous process that goes through several stages of research to ensure accuracy.

Every label attached to an address goes through a rigorous documentation process to ensure its accuracy

Here’s why we concluded that these 2 addresses are linked to the Polygon Foundation:

Starting with: 0x8d365687a75dc7688864822869ae0551bb6fc105

1. @sourcex44 (leads growth at…)

— Nansen ? (@nansen_ai) September 7, 2023

According to the analysis, the two wallets mentioned are closely connected to the company’s leadership, including the head of the investments department. One of the addresses also participated in private rounds of purchasing MATIC.

After public refutation by Polygon Labs CEO Mark Bauron, Nansen removed the labels as a gesture of goodwill.

Why remove the tag if it is indeed Polygon. That’s not goodwill. That’s collusion.

— Indoex (@indoexW) September 7, 2023

“Why remove the tag if it is indeed Polygon? That’s not goodwill. That’s collusion,” one user asked.

The MATIC price marginally reacted to the situation. The asset shows slight volatility but remains around $0.55.

In June, on social networks rumors circulated that the cryptocurrency exchange Binance allegedly sold its bitcoin reserves to defend BNB positions. The head of the trading platform, Changpeng Zhao, refuted these rumors, stating that the company still owns the tokens of the collapsed FTX exchange.