Polygon Founder Addresses Allegations of Over $5.9 Million MATIC Dumping by Crypto Asset’s Backer on Binance

The founder of Ethereum’s (ETH) layer-2 scaling solution, Polygon (MATIC), is currently addressing allegations concerning the Polygon Foundation’s deposit of nearly $6 million worth of the digital asset on the Binance cryptocurrency exchange.

In a recent communication posted on the social media platform X, Sandeep Nailwal, the founder of Polygon, has clarified that prior reports regarding the crypto asset’s backer unloading MATIC on the world’s largest cryptocurrency exchange, by trading volume, were inaccurately presented.

According to Nailwal, this occurrence marks the second instance of mislabeling by Lookonchain, and he urges caution when interpreting such tweets, as they tend to generate unwarranted fear, uncertainty, and doubt within the community.

Earlier this week, the blockchain data tracker, Lookonchain, reported that two addresses, purportedly linked to the Polygon Foundation, had collectively deposited $5.9 million worth of MATIC into Binance within the past 30 days.

Polygon Labs’ Chief Executive, Marc Boiron, also weighed in on the matter, affirming that Lookonchain had made an error.

“The wallet has been incorrectly categorized. It does not belong to the Polygon Foundation.”

Nonetheless, blockchain research firm Nansen asserted that the addresses had been associated with the Polygon Foundation based on data from previous transactions.

“The evidence for both of these addresses shows a very strong link to various individuals and entities of the Polygon Foundation, which is why we initially labeled them as such. In light of the public statement by Marc Boiron, CEO of Polygon Labs, disavowing ownership of the address, we have decided to remove the labels.”

At the time of this writing, MATIC is trading at $0.556, reflecting a marginal increase over the past 24 hours.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.