The founder of the Ethereum (ETH) layer-2 scaling solution Polygon (MATIC) is responding to allegations that the Polygon Foundation deposited nearly $6 million worth of the digital asset on Binance.

In a new thread on the social media platform X, Polyon founder Sandeep Nailwal says that previous reports about the crypto asset’s backer dumping MATIC on the world’s largest crypto exchange platform by volume were incorrectly labeled.

According to Nailwal, this isn’t the first time Lookonchain has mislabeled one of their wallets.

“One more time, incorrect labeling, Lookonchain. This is the second time this has happened. Please be careful about these tweets, creates unnecessary FUDs (fear, uncertainty, and doubt) for the community.”

Earlier this week, blockchain data tracker Lookonchain reported that two addresses allegedly linked to the Polygon Foundation deposited a combined $5.9 million worth of MATIC to Binance during the last 30 days.

Polygon Labs’ chief executive Marc Boiron chimed in, also saying that Lookonchain made a mistake.

“You have incorrectly labeled this wallet. It is not a Polygon Foundation wallet.”

However, according to blockchain research firm Nansen, the addresses were linked to the Polygon Foundation using data from previous transactions.

“The evidence for both of these addresses shows a very strong link to various individuals and entities of the Polygon Foundation and that’s why we had labeled these addresses as part of the Polygon Foundation. As a gesture of goodwill, we have removed the labels as [Marc Boiron], CEO of Polygon Labs, has publicly announced that the address is not theirs.”

MATIC is trading for $0.556 at time of writing, a fractional increase during the last 24 hours.

Feature Image: Shutterstock/Dolan Mbengi

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