Allegations of insider trading have surfaced regarding Mystiko Network’s second airdrop, where certain wallets received significantly more tokens than typical users. These claims emerged from a social media post by blockchain reporter Colin Wu, who pointed to suspicious activities involving newly created addresses and substantial token distributions.

According to the community, Mystiko Network is suspected of insider trading during its second airdrop. The official Mystiko-Vault Community Incentives wallet distributed 20 million XZK tokens to 1,487 newly created addresses via the Multisender app on July 5, 2024. This has raised concerns about the fairness of the airdrop.

The second airdrop was designed to reward holders of vXZK, the ERC-20 wrapped version of XZK, which serves as the governance token for Mystiko Network. The distribution was based on a snapshot of vXZK balances taken between June 30 and July 17, 2024.

Citing on-chain data, Wu revealed that the new addresses received gas funds from major exchanges like OKX and Bybit shortly after the airdrop. The community suspects that these coordinated actions were intended to benefit insiders, who then received a substantial number of tokens.

Moreover, the amount of tokens received by these new addresses was significantly higher than what regular users got, prompting further accusations of insider trading. This incident has drawn increased scrutiny to Mystiko Network, especially since the project secured $18 million in funding led by Sequoia Capital India in March 2024.

Mystiko Network Responds

In response to these allegations, Mystiko Network issued a statement addressing the community’s concerns and outlining their steps to investigate the matter.

At Mystiko Network, transparency and community trust are paramount. We were recently made aware of allegations regarding certain transactions involving our tokens.

Mystiko stated that they immediately launched an internal investigation upon learning about the allegations. The investigation confirmed the existence of the addresses in question and reviewed their transaction history.

The team emphasized that these addresses met the criteria for early contributors to the ecosystem, having conducted multiple transactions within the network. This marks the second airdrop controversy in two months, following concerns around the zkSync airdrop.

Despite the controversy, Mystiko Network has continued to attract over 150,000 users and over $276 million in transaction volume since its mainnet launch in March 2023.

Current Stats of Mystiko Network

Since the launch of Mystiko V1 on the Mainnet in March 2023, the network has achieved:

  • $276,710,654 in transaction volume
  • 153,790 unique users
  • 1,293,994 total transactions
  • Operations across six chains: Ethereum, BASE, Polygon, BSC, Avalanche, and Linea

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