Controversy as 1.4 Billion Polygon (MATIC) is Transferred Out of the Project’s Vesting Contract

• The Polygon community is concerned about the 1.4 billion MATIC tokens ‘recently’ transferred out of the project’s vesting contract.
• While one crypto researcher believes the transfer occurred in the last day or so, the Polygon team says this happened about a year ago.

One crypto researcher has identified what can only be described as a suspicious transaction on the Polygon network. According to Sam Martin, Ethereum L2 scaling solution unlocked the sum of 1.4 billion MATIC tokens from its vesting contract. Sharing a screenshot of the transactions, it is clear that there is a total of 9 transactions with 7 of the 9 transactions involving the movement of 25 million MATIC tokens each. The other two 618,304,816 MATIC and 593,304,816 MATIC tokens.

1.4 billion MATIC tokens, or 14% of the total supply, have been released from the vesting contract over the past hour pic.twitter.com/GUMsW97rUW

— Sam (@swmartin19) August 1, 2022

With this finding spooking MATIC investors and the Polygon community at large, the Polygon team has been quick to respond. For starters, Sandeep Nailwal, the founder of Polygon confirmed that the tokens were unlocked a year back. He further teased investors that a big announcement about the fund’s allocation will be made.

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

If any doubts, Read more on the announcement.👇👇

One big announcement tomorrow regarding the same🎉✌️ https://t.co/szSaa0P76G https://t.co/yNt5lxkEaa

— Sandeep | AggLayer 👿 (@sandeepnailwal) August 1, 2022

Some investors don’t seem bothered at all by the funds believing that the team is unlikely to do anything that might jeopardize the project. Their faith stems from the project’s most recent developments and partnerships that have continued to propel MATIC upwards.

In Q2 2022, the ecosystem grew dramatically. . Unique address creation, new transactions, and network revenue all increased over the market. These were up to 5.3 million, 284 million, and $5.5 million, respectively. Additionally, developer activity increased as highlighted in this tweet.

$MATIC “Over 90k developers published their first contract. This is more than 3x the pace of Q1 growth. On average, 1k new creators and 2.7k new contracts went live on the chain every day.”

Polygon Growth in 2022 is exponential ⚡️🔥✊#Polygon 🙌

Read More🔻

— WEB3 Market Insight 🇦🇺 (@iftikharpost) August 1, 2022

Polygon’s MATIC bleeds

Polygon’s MATIC has recorded a 7% drop in the last 24 hours. This has partly been caused by the controversy as well as a general bearish wave sweeping the wider market. At $0.8543, the token is more than 70% below its all-time high achieved 7 months ago.

Analysts expect Polygon to revisit this all-time high and set a new record within the year.