As a seasoned researcher with extensive experience in the blockchain and cryptocurrency space, I find the recent allegations of insider trading against Mystiko Network deeply concerning. The distribution patterns of the second airdrop tokens to certain addresses, which received significantly larger amounts than others, raise serious red flags.
The Decentralized Mystiko Network, which employs zero-knowledge (ZK) technology and provides tools to address the complexities of the blockchain trilemma, is currently facing accusations of insider trading regarding the distribution of its second airdrop.
Based on Collin Wu’s report as a blockchain expert, Mystiko Vault Community Incentives raised red flags on July 5 by transferring 20 million XZK tokens to 1,487 recently generated crypto addresses via the Multisender tool. These newly formed wallets received disproportionately larger amounts of XZK compared to other qualifying addresses that received the airdrop.
Suspicious Distribution Patterns
In addition, an examination of the blockchain data uncovered that two alleged addresses, “0xBca” and “0xda8,” collected roughly $1,787 and $2,170 worth of XZK tokens respectively, in the amount of 59,570 and 60,325 tokens. On the other hand, some other addresses received a mere $172 from the airdrop distribution.
Due to recent developments, there are growing suspicions among community members that Mystiko has been involved in illegal insider trading. Insider trading refers to the act of using confidential company information for personal gain by making trades before this information is made public.
Amidst the ongoing debate, some users asserted that they had been given extra “Gas” tokens from cryptocurrency platforms like OKX and Bybit following the completion of the airdrop event.
Between June 30 and July 17, Mystiko Network distributed its second round of airdrops to eligible holders of the vXZK token, which is the ERC-20 wrapped form of the XZK token.
The protocol captured users’ addresses through the specified process to identify recipients for distributing the XZK tokens, acting as both the governance and operational currency within the network.
Response to Allegations
In reaction to the accusations of insider trading, Mystiko Network used X as a platform to deny the allegations and once again expressed its dedication to maintaining transparency.
The platform recognized the significance of “early supporter addresses,” explaining that these were the email addresses of individuals who had backed the platform prior to others.
Our probe found that the specified addresses are genuine and have an accompanying record of transactions. These addresses seem to match the profile of early supporters of our platform, as they have engaged in numerous transactions within it.
Moving forward, the protocol is committed to greater transparency towards its community. In March, Mystiko secured a $18 million investment from Sequoia India and various venture capital firms.
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2024-07-25 15:37