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Home Crypto News Market 1.4 Billion Polygon (MATIC) Transferred Out of Project’s Vesting Contract Raise Concerns

1.4 Billion Polygon (MATIC) Transferred Out of Project’s Vesting Contract Raise Concerns

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Polygon Founder Addresses Concerns Over the 1.4 billion MATIC Tokens Transferred Out of the Project’s Vesting Contract.


Nailwal polygon founder said the funds were unlocked over a year ago, in contrast to a tweet made by a Blockworks researcher.

Sam Martin, author, and researcher at crypto media outlet Blockworks, recently informed that Ethereum Layer-2 scaling platform Polygon released a whopping number of MATIC tokens from its vesting contract. 

According to Martin, yesterday, the Ethereum L2 scaling solution unlocked the sum of 1.4 billion MATIC tokens from its vesting contract. 

“1.4 billion MATIC tokens, or 14% of the total supply, have been released from the vesting contract over the past hour,” Martin said. 

The Blockworks author also shared a screenshot of blockchain transactions, showing the token unlock. Per the screenshot, the funds were moved in nine separate transactions from the Polygon vesting contract to different sectors of the project. 

Details of the Funds’ Movement

Seven of the nine transactions involved the movement of 25 million MATIC tokens each. The remaining two were the most significant, with each containing 618,304,816 MATIC (618.3 million MATIC) and 593,304,816 MATIC tokens (593.3 million MATIC), respectively. 

According to the blockchain transaction, approximately 1.39 billion MATIC tokens, representing nearly 14% of the tokens’ total supply, were moved from the Polygon vesting contract just yesterday. 

Martin made another tweet, asking his followers and the Polygon team to explain where the funds are being moved to. 

Polygon Founder Addresses Investors’ Concerns

The tweet has attracted several engagements from the cryptocurrency community, especially Polygon’s core supporters. 

Many Polygon investors did not seem troubled by the news as they believed the team behind the project would not do anything that would jeopardize their investments. 

However, some critics have already taken advantage of the tweet to troll Polygon, calling on investors to liquidate their MATIC positions. 

Interestingly, Sandeep Nailwal, the founder of Polygon, was quick to address the tweet before it wreaked havoc on the price of MATIC

According to Nailwal, the tokens in question were not recently unlocked as stated by the Blockworks researcher. Nailwal said the tokens were unlocked over a year ago as per the vesting contract, and the planned move was planned. 

In response to Martin’s question to unravel where the funds were sent, Nailwal said the nearly 1.4 billion MATIC were allocated to different segments of the project, including Foundation Treasury, Staking, etc. 

“This was a planned movement from the tokens which as per vesting have been unlocked 1 year back. These are staking, foundation treasury etc.”

He shared a link to a Telegram made earlier by Polygon, while teasing investors that a big announcement about the funds allocation will be made later today. 

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Disclaimer

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Lele Jimaa
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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