Crypto News

Two projects accused the “Coin Market Cap” site of fraud

Two crypto projects that outsourced their airdrops and promotions to the famous CoinMarketCap website claim that during their campaigns, a large portion of the tokens were awarded to a small group of people. They accused the site of cheating in the allocation process.

According to Wallex and quoted by Coin Telegraph, these promotional airdrops, which were designed to distribute project tokens to thousands of wallets – to increase awareness about the project – were deposited in only a handful of wallets, which indicates possible manipulation in the distribution system. Is.

SATT token airdrop

The SaTT project, which is a provider of advertising solutions on the blockchain, claimed in a conversation with Cointelegraph that it had signed an agreement with the Coin Market Cap site to distribute its advertising airdrop in December 2022, but after the airdrop distribution, 84% of the tokens were distributed to only 21 The wallet was deposited.

The goal of the campaign was to qualify 25,000 wallets each to receive 4,000 SATT tokens worth approximately $6.3.

However, SaTT claims that shortly after the tokens were distributed, 20,953 recipient wallets automatically transferred their tokens to 21 wallets. These wallets sold the tokens a few days later on December 10 and pocketed $142,000.

This massive sale severely weakened the price of SATT and caused its value to drop by 70%.

The largest wallet among the 21 fraudulent wallets sold more than 4 million SaTT tokens

TokenBot airdrop

A similar thing happened to the TokenBot project. This project, like the SaTT team, did its advertising airdrop through the CMC website on December 9.

According to the project’s co-founder, CoinMarketCap sent the team a list of 30,000 winning addresses. The team decided to send the tokens in several rounds.

After sending tokens to the first 4,000 addresses, 3,300 addresses sent their balance to a wallet.

Image of massive TokenBot transfer to an address
Image of massive TokenBot transfer to an address

As a result of this incident, the project lost 20,000 dollars and had to allocate double capital from its treasury.

Shaun Newsum, co-founder of Token Bot, said:

It seems that someone managed to bypass the CoinMarketCap restrictions. If we deposited all the airdrops in one place, a disaster would occur.

Newsom added that the CoinMarketCap team had apologized to him and assured him that they would look into the matter. It will also send a fresh list of airdrop winners for bot tokens.

The SaTT team claims that upon further investigation, they found that 18 other projects suffered a similar fate and suffered a total financial loss of around $6.6 million.

This group believes that there are only two possible ways to justify this issue:

Either a group of hackers have succeeded in creating a large number of fake accounts on the Coin Market Cap site, or some agents of this site are involved in this work.

Coinmarketcap’s response to the allegations

The spokesperson of the CMC website answered some of the issues raised in a conversation with Cointelegraph. He first stated that at least 4 projects mentioned by SaTT have not yet distributed their tokens, so calling them “victims” is pointless.

He also acknowledged that he has received complaints from three SaTT projects, AgeOfGods and TokenBot, but no other projects have reported any problems so far.

Regarding the issue of robots, he added:

The digital currency industry has been facing the problem of bots in airdrops for some time, and the truth is that no industry has managed to completely solve the problem of bots.

We are constantly working to improve our systems and services to mitigate the problem and will continue to work closely with the project team to find a solution.

The post Two Projects Accused “Coin Market Cap” of Fraud appeared first on Wallex Blog. appeared.


hello my name is amir; i love bitcoin and dogecoin 🎯

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button