Polygon Labs denies dumping MATIC on Binance

In a Sept. 6 post on X, Lookonchain pointed out that Polygon Foundation had transferred millions of dollars worth of MATIC, their native token, to Binance, the world’s largest crypto exchange. Such transfers are often interpreted as bearish.

However, Sandeep Nailwal, the founder of Polygon Labs, has since denied this claim saying it was a case of mislabeling.

The blockchain analytics tool, Lookonchain, flagged two addresses, “Polygon Foundation: 0x8d36” and “Polygon Foundation: 0xf957,” which had collectively moved $5.5 million worth of MATIC to Binance in a month.

Of this, more than half was allegedly deposited on the exchange in the last two days.

Marc Boiron, the CEO of Polygon Labs, noticed the post and clarified that it was an error.

Lookonchain later revealed that the Polygon label was assigned by another analytics firm, Nansen.

Nansen responded with a post explaining their thorough address labeling process.

In their post on X, they revealed that both addresses had connections to Polygon.

One of them received tokens from private rounds in projects Polygon invested in, such as Hot Cross, while the other had strong associations with Polygon employees, including the head of Investments.

Despite their position, Nansen agreed to remove the label after the CEO of Polygon Labs publicly disputed the claim.

Polygon Labs founder Sandeep Nailwal also cautioned users on X to be cautious about tweets from Lookonchain, as they might create unwarranted fear, uncertainty, and doubt (FUD).

On Sep. 7, the Korean company Mirae Asset Securities partnered with Polygon Labs to expand their tokenized securities networks.

As part of their agreement, Polygon Labs will serve as a consultant for the tokenized asset firm.