Sandeep Nailwal, the creator of Polygon Labs, denied the charges, claiming that they were mislabeled.
Blockchain analytic firm Lookonchain recently raised alarms about a crypto wallet allegedly linked to the Polygon Foundation.
This wallet, identified as "Polygon Foundation: 0x8d36" and "Polygon Foundation: 0xf957," reportedly funnelled over $5.5 million worth of MATIC tokens into Binance over the past month, with a significant portion of the sum transferred in the last two days.
Polygon Labs founder, Sandeep Nailwal, however, refuted the allegations, asserting that this was a case of mislabeling. According to Nailwal, the wallet in question does not belong to the Polygon Foundation, challenging Lookonchain's findings.
The situation took a twist when Polygon Labs CEO Marc Boiron brought up the issue of mislabeling. In response, Lookonchain attributed the labelling to another crypto analytic firm, Nansen. Nansen defended their labelling process, citing strong links between the flagged wallets and key members of the Polygon Foundation.
In a specific instance, Polygon's Head of Growth, Sanket Shah, was found to have sent Ether to one of the wallet addresses. Furthermore, the same address received tokens from private rounds that Polygon had invested in, including Hot Cross.
For the second wallet address, Nansen pointed out its connections with entities closely tied to Polygon. The head of Investments was cited as one example. However, in light of the public refutation by Polygon Labs' CEO, Nansen decided to remove the label, emphasizing the complexity of wallet labelling.
In a strategic move, Binance, the world's largest crypto exchange, announced the discontinuation of support for Polygon on its NFT marketplace. This decision aligns with their goal of streamlining product offerings on the Binance NFT Marketplace.
The announcement came shortly after Binance CEO Changepeng Zhao addressed "rumors" on Twitter regarding company executives and project closures. Zhao clarified that the company was smoothly phasing out older products.
Effective September 26 at 6am UTC, users will no longer be able to buy or list Polygon NFTs on the Binance marketplace. Additionally, staking LAND NFTs hosted on Polygon for daily The Sandbox (SAND) rewards will no longer be possible.
Binance urged users to withdraw their NFTs by the end of the year as part of this transition.
The move by Binance not only impacts Polygon's presence in their marketplace but also highlights the importance of strategic decisions made by major players in the crypto ecosystem. The interconnectedness of these events serves as a reminder of the dynamic and evolving nature of the crypto industry.
As per CoinStats, Polygon's price is $0.542682, up 0.49% in the previous 24 hours, with a market size of $5 billion. It has a circulating supply volume of 10,000,000,000 MATIC coins and a maximum supply volume of 10,000,000,000, with a 24-hour trading volume of $66M.
Since the breakdown, the MATIC price has plummeted and is now trading at $0.55. If the bearish trend continues, the next nearest support will be at $0.40, a 26% decline from the present price.
The weekly Relative Strength Index (RSI) shows conflicting signals. Bulls have an edge if the RSI reading is over 50 and the trend is rising; if the reading is below 50, the inverse is true. On the one hand, the indicator is lower than 50, indicating a bearish trend. On the other hand, it has caused bullish divergence, which frequently accompanies bullish trend reversals.
In conclusion, the alleged MATIC transfer and subsequent actions taken by Binance exemplify the need for vigilance and due diligence within the community. As the industry continues to grow and adapt, it's imperative for stakeholders to stay informed and make decisions that uphold the integrity of the ecosystem.