- A Chinese MLM-linked wallet has accumulated 22.37 million MATIC.
- The wallet surpassed Binance in MATIC holdings.
- The wallet is now the fifth largest MATIC holder.
According to the details let out by the Chinese journalist Colin Wu, a wallet address linked with a Chinese MLM project has accumulated over 22.37 million MATIC in a few days.
The wallet has surpassed Binance‘s hot wallet 2 holdings to become the fifth largest MATIC holder. The address has also utilized 100,000 MATIC gas over the last seven days. The number of transactions on the wallet address also shot up by 117,000. It triggered the median of Polygon gas to spike by more than 700 gwei.
The MLM project also reportedly offered a referral stake of 1% APR daily. According to the details, the team behind the MLM project runs a referral staking program that provides an extremely high reward rate.
According to on-chain data, the address held 20.6 million MATIC, worth $25.2 million, at press time. MATIC is trading at $1.22 at press time. The coin is also down by 3.5% over the last 24 hours. The spike in activity has also pushed the 24-hour trading volume up by 73.44%.
The popularity of cryptos has made them a major attraction for several Ponzi schemes. The schemes promise eye-catching returns, which lure investors to pour their funds into them. However, most of them end up being scams where they disappear with all the funds.
The reliability of this particular contract is unclear at the moment. However, the smart contract has amassed over $30 million in just two days. It should also be noted that participating in such schemes can put you in a difficult position where you lose all of your funds.