Mystiko Denies Insider Trading Allegations

The Mystiko Network community has accused the Web3 project team of “large-scale insider trading” during the second airdrop, as reported by journalist Colin Wu.

According to community, Mystiko Network is suspected of a large amount of insider trading in the 2nd Airdrop. The official Mystiko-Vault Community Incentives: 0xBc…25d6 distributed 20 million XZK to 1,487 newly created addresses through the Multisender app at 16:22 UTC on July…

— Wu Blockchain (@WuBlockchain) July 25, 2024

The distribution of 20 million XZK tokens through the Multisender app to 1,487 addresses opened on July 5 raised suspicions. Typically, these new wallets received, in addition to project coins, gas fees from OKX or Bybit.

Moreover, the amount of the airdrop received by these addresses was greater than that of regular users.

Mystiko developers dismissed the accusations as “baseless.” They noted that the token distribution was allocated “for the most important use: network usage,” as confirmed by blockchain data.

In the light of baseless accusations that can only convince the uninitiated, we feel obligated to respond with the most transparent way: for good or for bad, the Blockchain is a very useful tool, and 1′ search can prove this claim unsubstantiated.

As any project that respects…

— Mystiko.Network (@MystikoNetwork) July 25, 2024

“Our investigation confirmed the existence of the addresses in question and their transaction history. These wallets appear to meet the criteria set for early ecosystem participants with numerous on-chain transactions,” stated the team.

The price of XZK has fallen nearly 11% in the past 24 hours, with a 54.5% drop over 30 days. The asset is trading near $0.04, with a market capitalization of $35.1 million.

Back in December 2023, Colin Wu suspected the Hooked Protocol team of insider trading.