Describing itself as ‘DeFi, non-surveillance, banking protocol’, Meld responded to allegations of fraudulent gaming by stating that there was no ‘insider trading’ on its platform. In response to accusations of insider trading, the altcoin project said that private sale token holders have no control over their actions.
Altcoin project denies ‘insider trading’ rumors
The accusations arose from on-chain analysis conducted by TapTools, which highlighted a number of large token sales. Further investigation revealed that the responsible address had sold tokens worth ADA 1.24 million, or about $405,000 at today’s price. Since September 2022, between three and seven million MELD tokens have been deposited monthly at the address.
In addition, TapTools identified two associated addresses that sell but never buy MELD tokens. These token sales totaled just over one million ADA, or about $340,000, at today’s price. “The wallet has 2 associated addresses with a history of sales without making any purchases, with a total of 1.04 million ADA worth of MELD sales,” TapTool said.
However, TapTools asks “where did the tokens come from?” “The address was checked by an insider while speculating,” he replied. Regarding the address, as we reported on Kriptokoin.com, Meld said that it is the “private sale token owner” of that address and has no control over the actions of the token holders. In addition, the company denied allegations that the staff was involved and benefited from the token sales. In this context, he made the following statement:
Hey TapTools, the transactions you pointed out (confirmed) private sale token holders are getting their MELD tokens from the vesting contract and have decided to sell it. This is DeFi 101. You’re implying these are MELD personnel? They are not MELD personnel.
Public test-net coming soon
Meld was launched by CEO Ken Olling in late 2020. Became the first company to run an Initial Stake Pool Offering (ISPO). Over 620 million ADA has been staked by the Cardano community. In addition, approximately $10 million was raised. The company has raised another $35 million through private token sales.
The firm aims to ‘merge’ fiat and crypto by offering fiat loans against crypto assets to users without giving up custody of their digital assets. At the same time, users also benefit from the interest on the crypto collateral for the life of the loan. According to the roadmap, in the first quarter of 2023, it will make its general test-net launch. A recent tweet fixed the livestream date to January 16.
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