HomeNEWSPolygon refutes MATIC dump, insists reports are misleading

Polygon refutes MATIC dump, insists reports are misleading


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Polygon co-founder Sandeep Nailwal has denied allegations about a massive transfer of MATIC to Binance. In a post on X, the co-founder dismissed claims that the Polygon Foundation is dumping MATIC. The rumors surfaced after on-chain analytics firm Lookonchain claimed that a wallet related to the foundation sold $3.35 million worth of MATIC on Binance.

While backing its claims, the on-chain analytics firm indicated that it collected the data from Nansen. According to the report, the foundation has allegedly sold 10.6 million MATIC which is worth about $5.92 million in the last 30 days. Consequently, the report triggered fear, uncertainty, and doubt (FUD) among the Polygon community. Investors of the token are growing skeptical about its future. This is due to how the token has lost 80.85% from its all-time high. 

In reaction, Sandeep Nailwal through the post established that the reports were “incorrect.” Furthermore, he added that Lookonchain in recent times has been relaying incorrect information to its audience. The co-founder then urged the platform to verify information before relaying it. Additionally, he added that Lookonchain must be careful to avoid triggering unnecessary tension. 

Similarly, the CEO of Polygon Labs, Marc Boiron also reacted to the allegations. Meanwhile, the response of the CEO surfaced before Sandeep Nailwal’s reaction. More so, the reply of the CEO further strengthens the position of the company relating to the allegations. Marc Boiron as well, refuted the claims that the wallets belonged to Polygon. 

Polygon plans to migrate from MATIC to POL

Rumors about Polygon Labs dumping the MATIC token have intensified in recent times. This is due to how the firm revealed a proposal to upgrade its native token. According to a Binbits report, the firm decided to rename from MATIC to POL to avail it to multiple networks. 

Further, the report revealed that the adoption of POL will be extended to projects relating to the Polygon network. These projects according to the report are zkEVM, Supernets, and many more. Also, the token according to Polygon Labs will incentivize network validators, encouraging them to improve their commitment to the project. 

It is worth mentioning that the recent report surfaced shortly after Polygon Labs collaborated with SK Telecom. As reported by Binbits on August 17, 2023, the firm collaborated with the Korea-based mobile carrier to support the development of Web3 in South Korea. 

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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