ChainArgos research has uncovered discrepancies in Polygon’s token allocation and detected suspicious flows to exchanges, raising concerns about the project’s adherence to its public token economics plan.
The investigation, outlined in the X thread by ChainArgos, focused on a large project and scrutinized the allocation of tokens, particularly in the Launchpad Sale and Staking categories. The publicly disclosed token allocation raised eyebrows, prompting a closer look at the underlying mechanisms.
The analysis revealed the presence of a “vesting contract” responsible for unlocking all token flows and a separate foundation contract managing allocations. The flows from these contracts exhibited irregularities, with distinct shapes and varying gaps.
Notably, the foundation contract, overseeing 10 billion tokens, showed outflows that seemed to align with the provided allocation table, except for the staking component. The cumulative flow into the staking contract, starting in June 2020, fell short of the expected range, leaving a “missing” 400 million tokens.
Binance Collaboration Unveiled in Polygon’s Outflows
Further investigation revealed that this missing allocation ended up in an address labeled “Binance 33” on Etherscan. A chart depicting the cumulative flow from the foundation to Binance 33 demonstrated a one-time inflow of 400 million tokens, raising suspicions about the legitimacy of the staking wallet.
Digging deeper, ChainArgos researchers traced the flow of tokens from Binance 33 to another address, 0x2f4Ee65D536c5a2Dd72004778167B30aeCb8719C. This address, in turn, received 300 million MATIC tokens from Binance 33, 467 million from an etherscan-labeled “Matic: Marketing & Ecosystem” wallet and ultimately sent 767 million tokens to various Binance exchange wallets.
The collaboration between the Polygon team and Binance in diverting tokens to external wallets has raised concerns about transparency and the project’s integrity. With an estimated value of a billion dollars, the outflows indicate a potential mismanagement of funds.
The investigation concludes by pointing out that these irregularities are not well-hidden, emphasizing the ease with which such information can be accessed. ChainArgos urges investors to conduct thorough due diligence and encourages them to question the destination of their investments, especially in light of the apparent collaboration between Polygon and Binance in token diversion.
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