Questionable Wallet Activity
According to data from Lookonchain, a crypto intelligence firm, Polygon Foundation wallet address 0x8d36 deposited a total of 6 million MATIC, equivalent to approximately $3.35 million, into Binance within the past two days. Another wallet, 0xf957, also attributed to the Polygon Foundation, transferred 4.6 million MATIC, valued at about $2.57 million, to Binance over the course of the last 30 days.
Polygon CEO’s Response
Marc Boiron, the CEO of Polygon Labs, has refuted the claims of the foundation’s involvement in selling MATIC tokens. Boiron made these comments in response to a post by Lookonchain.
Following this, Lookonchain clarified that the wallet addresses were labeled as “Polygon Foundation” based on data from the renowned on-chain data analysis tool, Nansen. Nansen maintains a data warehouse containing millions of labeled wallets, categorizing them based on various characteristics, including profit generation from NFTs, participation in airdrops, or affiliation with organizations.
Caution from Polygon’s Founder
Sandeep Nailwal, the founder of Polygon, also cautioned against hasty labeling, urging the community to exercise careful consideration to prevent unnecessary FUD (Fear, Uncertainty, Doubt). Notably, this incident marks the second mislabeling of the firm as Polygon.
Polygon (MATIC) Price Action
Despite Polygon’s swift denial of token sales, the significant increase in MATIC token transfers to exchanges by investors indicates a potential loss of confidence in the project. This coincides with an 80.78% decrease in MATIC’s price from its all-time high.
However, as of the time of writing, MATIC is trading at $0.5616, reflecting a slight increase of 0.38% within the last 24 hours. Additionally, Polygon’s daily trading volume has experienced a 3.32% uptick in a single day, reaching $231 million.
Furthermore, the daily trading price of MATIC suggests a bullish trend, with prices currently positioned above the 9 and 21-day cross moving averages. The RSI indicator signals an oversold state, which typically occurs when an asset has traded lower in price and has the potential for a price rebound.
